Innovative Solutions and Support (NASDAQ:ISSC) and Environmental Tectonics (OTCMKTS:ETCC) Financial Survey

Innovative Solutions and Support (NASDAQ:ISSC) and Environmental Tectonics (OTCMKTS:ETCC) are both small-cap aerospace companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Valuation & Earnings

This table compares Innovative Solutions and Support and Environmental Tectonics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Solutions and Support	$47.20 million	4.34	$7.00 million	$0.66	17.61
Environmental Tectonics	$62.94 million	0.16	$13.06 million	$0.75	1.38

Environmental Tectonics has higher revenue and earnings than Innovative Solutions and Support. Environmental Tectonics is trading at a lower price-to-earnings ratio than Innovative Solutions and Support, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Innovative Solutions and Support and Environmental Tectonics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovative Solutions and Support	15.10%	23.86%	14.15%
Environmental Tectonics	19.38%	-257.02%	13.90%

Insider & Institutional Ownership

28.5% of Innovative Solutions and Support shares are held by institutional investors. 4.4% of Innovative Solutions and Support shares are held by company insiders. Comparatively, 74.8% of Environmental Tectonics shares are held by company 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Innovative Solutions and Support and Environmental Tectonics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Solutions and Support	0	0	0	1	4.00
Environmental Tectonics	0	0	0	0	0.00

Volatility & Risk

Innovative Solutions and Support has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Environmental Tectonics has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Summary

Innovative Solutions and Support beats Environmental Tectonics on 8 of the 13 factors compared between the two stocks.

About Innovative Solutions and Support

Innovative Solutions and Support, Inc., a systems integrator, designs, develops, manufactures, sells, and services flight guidance, autothrottles, and cockpit display systems in the United States and internationally. It offers flat panel display systems that replicate the display of analog or digital displays on one screen and replace existing displays in legacy aircraft, as well as used for security monitoring on-board aircraft and as tactical workstations on military aircraft; and flight deck management system, a navigation and performance computer that upgrade for commercial air transport aircraft. The company also provides integrated standby units, which incorporate the measurement and display of attitude, altitude, airspeed, and navigation data into a single backup navigation instrument for military, commercial air transport, and corporate/general aviation applications. In addition, it offers digital air data computers that calculate various air data parameters, such as altitude, airspeed, vertical speed, angle of attack, and other information; integrated air data computers and display units, which calculate and convey air data information; altitude displays that convey aircraft altitude measurements; airspeed displays that convey various airspeed measurements; and altitude alerters. Further, the company offers the engine and fuel displays that convey information related to fuel and oil levels, and engine activity, including oil and hydraulic pressure and temperature; integrated global navigation systems; ThrustSense, a full regime autothrottle; and utility management systems. It serves commercial air transport carriers and corporate/general aviation companies, the Department of Defense and its commercial contractors, aircraft operators, aircraft modification centers, government agencies, and foreign militaries, as well as original equipment manufacturers. Innovative Solutions and Support, Inc. was incorporated in 1988 and is based in Exton, Pennsylvania.

About Environmental Tectonics

Environmental Tectonics Corporation, together with its subsidiaries, operates as an engineered solutions company in the United States and internationally. It operates in two segments, Aerospace Solutions (Aerospace) and Commercial/Industrial Systems (CIS). The Aerospace segment engages in the design, manufacture, and sale of aircrew training systems to commercial, governmental, and military defense agencies; training devices, including altitude and multiplace chambers to governmental and military defense agencies, and civil aviation organizations; and advanced disaster management simulators to governmental organizations, original equipment manufacturers, fire and emergency training schools, universities, and airports, as well as provides integrated logistics support services. The CIS segment is involved in the design, manufacture, and sale of steam and gas sterilizers to medical device and pharmaceutical manufacturers, as well as universities; and environmental testing and simulation systems primarily to commercial automotive, as well as to heating, ventilation, and air conditioning manufacturers. This segment also provides parts, as well as upgrade, maintenance, and repair services. The company markets its products through independent sales representatives and distributors. Environmental Tectonics Corporation was incorporated in 1969 and is headquartered in Southampton, Pennsylvania.