Reviewing Draganfly (NASDAQ:DPRO) and New Horizon Aircraft (NASDAQ:HOVR)

New Horizon Aircraft (NASDAQ:HOVR) and Draganfly (NASDAQ:DPRO) are both small-cap aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for New Horizon Aircraft and Draganfly, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Horizon Aircraft	0	0	0	0	N/A
Draganfly	0	0	2	0	3.00

Draganfly has a consensus target price of $1.00, indicating a potential upside of 286.10%. Given Draganfly’s higher probable upside, analysts plainly believe Draganfly is more favorable than New Horizon Aircraft.

Valuation & Earnings

This table compares New Horizon Aircraft and Draganfly’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Horizon Aircraft	N/A	N/A	$8.61 million	N/A	N/A
Draganfly	$4.86 million	2.63	-$17.49 million	($0.44)	-0.59

New Horizon Aircraft has higher earnings, but lower revenue than Draganfly.

Profitability

This table compares New Horizon Aircraft and Draganfly’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New Horizon Aircraft	N/A	-29.17%	3.03%
Draganfly	-359.88%	-327.92%	-189.77%

Insider and Institutional Ownership

66.0% of New Horizon Aircraft shares are held by institutional investors. Comparatively, 10.4% of Draganfly shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

New Horizon Aircraft beats Draganfly on 5 of the 8 factors compared between the two stocks.

About New Horizon Aircraft

New Horizon Aircraft Ltd., an aerospace engineering company, focuses on designing and developing the hybrid electric vertical takeoff and landing (eVTOL) aircraft for the regional air mobility market primarily in the United States. It is developing Cavorite X7, a hybrid electric 7-seat aircraft that can take off and land vertically. The company was founded in 2013 and is headquartered in Lindsay, Canada.

About Draganfly

Draganfly Inc. manufactures and sells commercial unmanned aerial vehicles worldwide. Its products include quadcopters, fixed wing aircrafts, ground based robots, and handheld controllers, as well as software used for tracking, live streaming, flight training, and data collection. The company also offers custom engineering, training, consulting, spraying, flight, and geographic information systems data services. It serves public safety, agriculture, industrial inspections, security, and mapping and surveying markets. Draganfly Inc. was founded in 1998 and is headquartered in Saskatoon, Canada.