Innovative Solutions and Support (NASDAQ:ISSC – Get Free Report) and Loar (NYSE:LOAR – Get Free Report) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.
Valuation & Earnings
This table compares Innovative Solutions and Support and Loar”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 | 3.51 | $7.00 million | $0.66 | 14.24 |
| Loar | $402.82 million | 18.42 | $22.23 million | $0.46 | 172.26 |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Innovative Solutions and Support and Loar, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innovative Solutions and Support | 0 | 1 | 0 | 1 | 3.00 |
| Loar | 0 | 1 | 3 | 1 | 3.00 |
Loar has a consensus price target of $97.00, suggesting a potential upside of 22.41%. Given Loar’s higher probable upside, analysts clearly believe Loar is more favorable than Innovative Solutions and Support.
Risk & Volatility
Innovative Solutions and Support has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Loar has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.
Profitability
This table compares Innovative Solutions and Support and Loar’s 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% |
| Loar | 9.82% | 5.50% | 3.82% |
Insider & Institutional Ownership
28.5% of Innovative Solutions and Support shares are owned by institutional investors. 4.4% of Innovative Solutions and Support shares are owned by insiders. Comparatively, 22.6% of Loar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Loar beats Innovative Solutions and Support on 7 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 Loar
Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, actuation devices, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was founded in 2017 and is headquartered in White Plains, New York.
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