Aspen Aerogels (NYSE:ASPN) versus Inno (NASDAQ:INHD) Financial Analysis

Aspen Aerogels (NYSE:ASPN) and Inno (NASDAQ:INHD) are both small-cap construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Insider & Institutional Ownership

97.6% of Aspen Aerogels shares are held by institutional investors. Comparatively, 0.2% of Inno shares are held by institutional investors. 4.3% of Aspen Aerogels shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Aspen Aerogels and Inno”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aspen Aerogels	$452.70 million	1.27	$13.38 million	($3.81)	-1.83
Inno	$890,000.00	11.55	-$3.21 million	N/A	N/A

Aspen Aerogels has higher revenue and earnings than Inno.

Analyst Ratings

This is a summary of recent recommendations for Aspen Aerogels and Inno, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aspen Aerogels	1	2	6	1	2.70
Inno	0	0	0	0	0.00

Aspen Aerogels currently has a consensus price target of $19.50, indicating a potential upside of 179.57%. Given Aspen Aerogels’ stronger consensus rating and higher probable upside, analysts clearly believe Aspen Aerogels is more favorable than Inno.

Profitability

This table compares Aspen Aerogels and Inno’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aspen Aerogels	-78.53%	2.92%	1.85%
Inno	-244.24%	-84.48%	-74.24%

Risk and Volatility

Aspen Aerogels has a beta of 2.73, indicating that its stock price is 173% more volatile than the S&P 500. Comparatively, Inno has a beta of -2.18, indicating that its stock price is 318% less volatile than the S&P 500.

Summary

Aspen Aerogels beats Inno on 12 of the 13 factors compared between the two stocks.

About Aspen Aerogels

Aspen Aerogels, Inc. designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. It operates in two segments, Energy Industrial and Thermal Barrier. The company offers PyroThin thermal barriers for use in lithium-ion batteries in electric vehicles and energy storage industries; Pyrogel XTE that reduces the risk of corrosion under insulation in energy infrastructure operating systems; and Pyrogel HPS for applications within the power generation market. It also offers Pyrogel XTF to provide protection against fire; Cryogel Z for sub-ambient and cryogenic applications in the energy infrastructure market; Spaceloft Subsea for use in pipe-in-pipe applications in offshore oil production; and Cryogel X201, which is used in designing cold systems, such as refrigerated appliances, cold storage equipment, and aerospace systems. The company was founded in 2001 and is headquartered in Northborough, Massachusetts.

About Inno

Inno Holdings Inc. manufactures and sells cold-formed-steel members, castor cubes, mobile factories, and prefabricated homes in the United States. The company provides cold-formed steel framing and a mobile factory for off-site equipment rental, sales, service, and support. It serves in residential, commercial, industrial, and infrastructure projects. Inno Holdings Inc. was founded in 2019 and is headquartered in Brookshire, Texas.