Head to Head Analysis: Huntington Ingalls Industries (NYSE:HII) versus New Horizon Aircraft (NASDAQ:HOVR)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Huntington Ingalls Industries and New Horizon Aircraft, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Ingalls Industries	1	4	3	0	2.25
New Horizon Aircraft	0	1	1	1	3.00

Huntington Ingalls Industries presently has a consensus target price of $262.67, indicating a potential downside of 8.07%. New Horizon Aircraft has a consensus target price of $11.00, indicating a potential upside of 276.71%. Given New Horizon Aircraft’s stronger consensus rating and higher possible upside, analysts plainly believe New Horizon Aircraft is more favorable than Huntington Ingalls Industries.

Profitability

This table compares Huntington Ingalls Industries and New Horizon Aircraft’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%
New Horizon Aircraft	N/A	-230.87%	4.72%

Valuation & Earnings

This table compares Huntington Ingalls Industries and New Horizon Aircraft”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huntington Ingalls Industries	$11.54 billion	0.97	$550.00 million	$13.36	21.39
New Horizon Aircraft	N/A	N/A	$5.20 million	N/A	N/A

Huntington Ingalls Industries has higher revenue and earnings than New Horizon Aircraft.

Volatility & Risk

Huntington Ingalls Industries has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, New Horizon Aircraft has a beta of 2.79, suggesting that its stock price is 179% more volatile than the S&P 500.

Insider & Institutional Ownership

90.5% of Huntington Ingalls Industries shares are held by institutional investors. Comparatively, 66.0% of New Horizon Aircraft shares are held by institutional investors. 0.9% of Huntington Ingalls Industries shares are held by insiders. Comparatively, 11.1% of New Horizon Aircraft shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

New Horizon Aircraft beats Huntington Ingalls Industries on 7 of the 13 factors compared between the two stocks.

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 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.