Contrasting Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ) and XTI Aerospace (NASDAQ:XTIA)

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ) and XTI Aerospace (NASDAQ:XTIA) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Profitability

This table compares Embraer-Empresa Brasileira de Aeronautica and XTI Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embraer-Empresa Brasileira de Aeronautica	6.02%	16.43%	4.76%
XTI Aerospace	-1,323.51%	-970.70%	-222.70%

Earnings & Valuation

This table compares Embraer-Empresa Brasileira de Aeronautica and XTI Aerospace”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embraer-Empresa Brasileira de Aeronautica	$6.39 billion	1.64	$352.50 million	$2.16	26.45
XTI Aerospace	$3.20 million	6.64	-$35.60 million	N/A	N/A

Embraer-Empresa Brasileira de Aeronautica has higher revenue and earnings than XTI Aerospace.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Embraer-Empresa Brasileira de Aeronautica and XTI Aerospace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embraer-Empresa Brasileira de Aeronautica	1	0	4	2	3.00
XTI Aerospace	0	0	0	1	4.00

Embraer-Empresa Brasileira de Aeronautica presently has a consensus target price of $52.6667, indicating a potential downside of 7.81%. Given Embraer-Empresa Brasileira de Aeronautica’s higher possible upside, equities research analysts plainly believe Embraer-Empresa Brasileira de Aeronautica is more favorable than XTI Aerospace.

Risk & Volatility

Embraer-Empresa Brasileira de Aeronautica has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, XTI Aerospace has a beta of 4.62, indicating that its stock price is 362% more volatile than the S&P 500.

Institutional & Insider Ownership

34.7% of Embraer-Empresa Brasileira de Aeronautica shares are owned by institutional investors. Comparatively, 11.7% of XTI Aerospace shares are owned by institutional investors. 1.0% of Embraer-Empresa Brasileira de Aeronautica shares are owned by insiders. Comparatively, 0.3% of XTI Aerospace shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Embraer-Empresa Brasileira de Aeronautica beats XTI Aerospace on 10 of the 13 factors compared between the two stocks.

About Embraer-Empresa Brasileira de Aeronautica

Embraer S.A. designs, develops, manufactures, and sells aircraft and systems in North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. The company operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment designs, develops, manufactures, and sells commercial jets, as well as leases aircraft. The Defense & Security segment engages in the research, development, production, modification, and support for military defense and security aircraft; and offers a range of products and integrated solutions that include radars, special space systems, and cyber security solutions, as well as information and communications systems comprising command, control, communications, computer, intelligence, surveillance, and reconnaissance systems. The Executive Aviation segment develops, produces, and sells executive jets. This segment also leases Phenom family executive jets in the entry jet and light jet categories; and Praetor 500 and Praetor 600, disruptive executive jets in the midsize and super midsize categories. The Service & Support segment provides after-service solutions and support services; maintenance, repair, and overhaul services for commercial, executive, and defense aircraft; and aircraft components and engines. This segment also supplies steel and composite aviation structures to various aircraft manufacturers. The Other segment engages 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 incorporated in 1969 and is headquartered in São Paulo, Brazil.

About XTI Aerospace

XTI Aerospace, Inc. engages in the provision of aircraft manufacturing. It primarily focuses on the light and mid-size business aircraft market. The company was founded in April 1999 and is headquartered in Englewood, CO.