Comparing Zanite Acquisition (NASDAQ:ZNTE) & Embraer (NYSE:ERJ)

Zanite Acquisition (NASDAQ:ZNTEGet Rating) and Embraer (NYSE:ERJGet Rating) are both aerospace companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Zanite Acquisition and Embraer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zanite Acquisition N/A -42.52% 6.16%
Embraer -1.07% -1.03% -0.28%

Risk & Volatility

Zanite Acquisition has a beta of -0.15, suggesting that its stock price is 115% less volatile than the S&P 500. Comparatively, Embraer has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Valuation & Earnings

This table compares Zanite Acquisition and Embraer’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zanite Acquisition N/A N/A $14.52 million N/A N/A
Embraer $4.20 billion N/A -$44.70 million ($0.25) -47.20

Zanite Acquisition has higher earnings, but lower revenue than Embraer.

Institutional & Insider Ownership

65.1% of Zanite Acquisition shares are held by institutional investors. Comparatively, 36.5% of Embraer shares are held by institutional investors. 1.0% of Embraer shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Zanite Acquisition and Embraer, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zanite Acquisition 0 0 0 0 N/A
Embraer 1 1 6 0 2.63

Embraer has a consensus target price of $20.59, suggesting a potential upside of 74.46%. Given Embraer’s higher possible upside, analysts plainly believe Embraer is more favorable than Zanite Acquisition.

Summary

Embraer beats Zanite Acquisition on 6 of the 10 factors compared between the two stocks.

Zanite Acquisition Company Profile (Get Rating)

Zanite Acquisition Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in the aviation, aerospace and defense, urban mobility, and emerging technology industries. The company was incorporated in 2020 and is based in Cleveland, Ohio.

Embraer Company Profile (Get Rating)

Embraer S.A. designs, develops, manufactures, and sells aircrafts and systems in Brazil, North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. It operates through Defense and Security; Executive Jets; Service & Support; and Other segments. The Defense and Security segment engages in the research, development, production, modification, and support for military defense and security aircraft, as well as offers a range of products and integrated solutions that include radars, special space systems (satellites), and information and communications systems, such as command, control, communications, computer, intelligence, surveillance, and reconnaissance systems. The Executive Jets segment develops, produces, and sells executive jets. It also leases Legacy 600 and Legacy 650 executive jets in the super midsize and large categories; Legacy 450 and Legacy 500 executive jets in the midlight and midsize categories; Phenom family executive jets in the entry jet and light jet categories; Lineage 1000, an ultra-large executive jet; and Praetor 500 and Praetor 600, disruptive executive jets in the midsize and super midsize categories. The Service & Support segment offers after-service solutions, support, and maintenance, repair, and overhaul services for commercial, executive, and defense aircraft; provides aircraft components and engines; and supplies steel and composite aviation structures to various aircraft manufacturers. The Other segment is involved in the supply of fuel systems, structural parts, and mechanical and hydraulic systems; and production of agricultural crop-spraying aircraft. The company was formerly known as Embraer-Empresa Brasileira de Aeronáutica S.A. and changed its name to Embraer S.A. in November 2010. Embraer S.A. was founded in 1969 and is headquartered in São Paulo, Brazil.

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