Huntington Ingalls Industries (NYSE:HII) versus StandardAero (NYSE:SARO) Head-To-Head Analysis

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

Profitability

This table compares Huntington Ingalls Industries and StandardAero’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huntington Ingalls Industries	4.54%	11.34%	4.43%
StandardAero	2.37%	8.87%	2.98%

Earnings and Valuation

This table compares Huntington Ingalls Industries and StandardAero”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huntington Ingalls Industries	$11.54 billion	0.94	$550.00 million	$13.36	20.79
StandardAero	$5.24 billion	1.67	$10.97 million	$0.41	63.90

Huntington Ingalls Industries has higher revenue and earnings than StandardAero. Huntington Ingalls Industries is trading at a lower price-to-earnings ratio than StandardAero, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

90.5% of Huntington Ingalls Industries shares are owned by institutional investors. 0.7% of Huntington Ingalls Industries shares are owned by company insiders. Comparatively, 1.9% of StandardAero shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Huntington Ingalls Industries and StandardAero, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Ingalls Industries	1	5	3	0	2.22
StandardAero	0	4	6	1	2.73

Huntington Ingalls Industries currently has a consensus target price of $264.43, indicating a potential downside of 4.78%. StandardAero has a consensus target price of $34.36, indicating a potential upside of 31.16%. Given StandardAero’s stronger consensus rating and higher possible upside, analysts plainly believe StandardAero is more favorable than Huntington Ingalls Industries.

About Huntington Ingalls Industries

Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of nuclear-powered aircraft carriers. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, the company provides C5ISR systems and operations; application of artificial intelligence and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and electronic warfare; live, virtual, and constructive solutions; unmanned, autonomous systems; and fleet sustainment; and critical nuclear operations. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.

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.