Redwire (RDW) vs. Its Rivals Critical Analysis

Redwire (NYSE:RDW) is one of 33 publicly-traded companies in the “AEROSP/DEFENSE” industry, but how does it contrast to its peers? We will compare Redwire to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, dividends and valuation.

Valuation and Earnings

This table compares Redwire and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Redwire	$304.10 million	-$114.32 million	-7.08
Redwire Competitors	$18.81 billion	$730.78 million	9.78

Redwire’s peers have higher revenue and earnings than Redwire. Redwire is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Redwire and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redwire	-39.31%	N/A	-16.63%
Redwire Competitors	-410.26%	-70.28%	-14.00%

Institutional & Insider Ownership

8.1% of Redwire shares are held by institutional investors. Comparatively, 53.5% of shares of all “AEROSP/DEFENSE” companies are held by institutional investors. 2.6% of Redwire shares are held by company insiders. Comparatively, 10.4% of shares of all “AEROSP/DEFENSE” companies are held by company insiders. 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.

Analyst Ratings

This is a summary of recent ratings and target prices for Redwire and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	0	2	5	0	2.71
Redwire Competitors	392	2130	3304	120	2.53

Redwire presently has a consensus target price of $19.38, indicating a potential upside of 21.06%. As a group, “AEROSP/DEFENSE” companies have a potential upside of 3.13%. Given Redwire’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Redwire is more favorable than its peers.

Risk and Volatility

Redwire has a beta of 2.54, meaning that its share price is 154% more volatile than the S&P 500. Comparatively, Redwire’s peers have a beta of 1.20, meaning that their average share price is 20% more volatile than the S&P 500.

Summary

Redwire peers beat Redwire on 7 of the 13 factors compared.

Redwire Company Profile

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.