Redwire (NYSE:RDW) and Safran (OTCMKTS:SAFRY) Financial Contrast

Redwire (NYSE:RDW) and Safran (OTCMKTS:SAFRY) are both aerospace companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Earnings & Valuation

This table compares Redwire and Safran”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwire	$304.10 million	7.58	-$114.32 million	($2.26)	-7.16
Safran	$30.47 billion	4.45	-$721.84 million	N/A	N/A

Redwire has higher earnings, but lower revenue than Safran.

Volatility and Risk

Redwire has a beta of 2.53, indicating that its share price is 153% more volatile than the S&P 500. Comparatively, Safran has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares Redwire and Safran’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redwire	-39.31%	N/A	-16.63%
Safran	N/A	N/A	N/A

Insider and Institutional Ownership

8.1% of Redwire shares are held by institutional investors. Comparatively, 0.1% of Safran shares are held by institutional investors. 2.6% of Redwire shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Redwire and Safran, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	0	2	5	0	2.71
Safran	0	2	2	1	2.80

Redwire presently has a consensus target price of $19.38, suggesting a potential upside of 19.78%. Given Redwire’s higher probable upside, equities research analysts clearly believe Redwire is more favorable than Safran.

Summary

Redwire beats Safran on 7 of the 12 factors compared between the two stocks.

About Redwire

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft. It offers software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company microgravity payloads, radio frequency systems, antennas, star trackers, platforms, and in-space manufacturing and biotech facilities. Redwire Corporation is headquartered in Jacksonville, Florida.

About Safran

Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide. The company operates through three segments: Aerospace Propulsion; Aircraft Equipment, Defense and Aerosystems; and Aircraft Interiors. The Aerospace Propulsion segment designs, develops, produces, and markets propulsion and mechanical power transmission systems for commercial aircraft, military transport, training and combat aircraft, civil and military helicopters, satellites, and drones; and offers maintenance, repair, and overhaul (MRO) services, as well as sells spare parts. The Aircraft Equipment, Defense and Aerosystems segment provides landing gears and brakes; nacelles and reversers; avionics, such as flight controls and onboard information systems; security systems, including evacuation slides and oxygen masks; onboard computers and fuel systems; electrical power management systems and related engineering services; and optronic equipment and sights, navigation equipment and sensors, infantry, and drones, as well as offers MRO services and sells spare parts. The Aircraft Interiors segment designs, develops, manufactures, and markets aircraft seats for passengers and crew; cabin equipment, overhead bins, class dividers, passenger service units, cabin interior solutions, chilling systems, galleys, electrical inserts, and trolleys and cargo equipment; and cabin and passenger solutions, such as water distribution equipment, lavatories, air systems, and in-flight entertainment and connectivity systems. Its products and services are used in civil and military aircraft, and helicopters. Safran SA was founded in 1896 and is based in Paris, France.