Contrasting Redwire (NYSE:RDW) & New Horizon Aircraft (NASDAQ:HOVR)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	0	1	7	0	2.88
New Horizon Aircraft	0	0	1	1	3.50

Redwire presently has a consensus price target of $20.00, suggesting a potential upside of 122.72%. New Horizon Aircraft has a consensus price target of $2.00, suggesting a potential upside of 13.64%. Given Redwire’s higher possible upside, equities research analysts plainly believe Redwire is more favorable than New Horizon Aircraft.

Insider & Institutional Ownership

8.1% of Redwire shares are held by institutional investors. Comparatively, 66.0% of New Horizon Aircraft shares are held by institutional investors. 2.6% of Redwire shares are held by company insiders. Comparatively, 11.1% of New Horizon Aircraft shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwire	$261.35 million	4.90	-$114.32 million	($3.25)	-2.76
New Horizon Aircraft	N/A	N/A	-$8.16 million	N/A	N/A

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Redwire	-71.95%	N/A	-15.15%
New Horizon Aircraft	N/A	-104.57%	185.73%

Risk and Volatility

Redwire has a beta of 2.52, indicating that its share price is 152% more volatile than the S&P 500. Comparatively, New Horizon Aircraft has a beta of 2.61, indicating that its share price is 161% more volatile than the S&P 500.

Summary

New Horizon Aircraft beats Redwire on 8 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 New Horizon Aircraft

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