Financial Contrast: StandardAero (NYSE:SARO) & Textron (NYSE:TXT)

StandardAero (NYSE:SARO) and Textron (NYSE:TXT) are both aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for StandardAero and Textron, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StandardAero	0	3	5	1	2.78
Textron	0	6	6	0	2.50

StandardAero currently has a consensus price target of $34.6667, indicating a potential upside of 25.59%. Textron has a consensus price target of $92.6667, indicating a potential upside of 20.30%. Given StandardAero’s stronger consensus rating and higher probable upside, research analysts plainly believe StandardAero is more favorable than Textron.

Earnings and Valuation

This table compares StandardAero and Textron”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StandardAero	$5.24 billion	1.76	$10.97 million	N/A	N/A
Textron	$13.70 billion	1.00	$824.00 million	$4.42	17.43

Textron has higher revenue and earnings than StandardAero.

Profitability

This table compares StandardAero and Textron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StandardAero	N/A	N/A	N/A
Textron	5.80%	14.26%	6.12%

Insider & Institutional Ownership

86.0% of Textron shares are held by institutional investors. 1.7% of Textron shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Textron beats StandardAero on 8 of the 12 factors compared between the two stocks.

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.

About Textron

Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates through six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts. The Bell segment supplies military and commercial helicopters, tiltrotor aircrafts, and related spare parts and services. The Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles. The Industrial segment offers blow-molded solutions, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, plastic tanks for catalytic reduction systems, and battery housing systems for use in electric vehicles primarily to automobile original equipment manufacturers (OEMs); and golf cars, off-road utility vehicles, powersports products, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The Textron eAviation segment manufactures and sells light aircraft and gliders with electric and combustion engines; and provides other research and development initiatives related to sustainable aviation solutions. The Finance segment offers financing services to purchase new and pre-owned aviation aircraft and Bell helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.