Analyzing Howmet Aerospace (NYSE:HWM) & XTI Aerospace (NASDAQ:XTIA)

Howmet Aerospace (NYSE:HWM) and XTI Aerospace (NASDAQ:XTIA) are both aerospace companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Profitability

This table compares Howmet Aerospace and XTI Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Howmet Aerospace	18.09%	28.17%	12.26%
XTI Aerospace	-1,714.04%	-655.07%	-179.15%

Valuation & Earnings

This table compares Howmet Aerospace and XTI Aerospace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Howmet Aerospace	$7.98 billion	10.33	$1.16 billion	$3.56	57.57
XTI Aerospace	$3.04 million	10.08	-$35.60 million	($39.23)	-0.04

Howmet Aerospace has higher revenue and earnings than XTI Aerospace. XTI Aerospace is trading at a lower price-to-earnings ratio than Howmet Aerospace, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Howmet Aerospace has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, XTI Aerospace has a beta of 4.84, indicating that its stock price is 384% more volatile than the S&P 500.

Institutional and Insider Ownership

90.5% of Howmet Aerospace shares are owned by institutional investors. Comparatively, 11.7% of XTI Aerospace shares are owned by institutional investors. 1.0% of Howmet Aerospace shares are owned by company insiders. Comparatively, 7.4% of XTI Aerospace shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Howmet Aerospace and XTI Aerospace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Howmet Aerospace	0	4	14	0	2.78
XTI Aerospace	1	0	0	1	2.50

Howmet Aerospace presently has a consensus price target of $212.79, suggesting a potential upside of 3.82%. Given Howmet Aerospace’s stronger consensus rating and higher possible upside, analysts clearly believe Howmet Aerospace is more favorable than XTI Aerospace.

Summary

Howmet Aerospace beats XTI Aerospace on 12 of the 15 factors compared between the two stocks.

About Howmet Aerospace

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally. It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The Engine Products segment offers airfoils and seamless rolled rings primarily for aircraft engines and industrial gas turbines; and rotating and structural parts. The Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners; and latches, bearings, fluid fittings, and installation tools. The Engineered Structures segment provides titanium ingots and mill products, aluminum and nickel forgings, and machined components and assemblies for aerospace and defense applications; and titanium forgings, extrusions, and forming and machining services for airframe, wing, aero-engine, and landing gear components. The Forged Wheels segment offers forged aluminum wheels and related products for heavy-duty trucks and commercial transportation markets. The company was formerly known as Arconic Inc. Howmet Aerospace Inc. was founded in 1888 and is based in Pittsburgh, Pennsylvania.

About XTI Aerospace

XTI Aerospace, Inc. engages in the provision of aircraft manufacturing. It primarily focuses on the light and mid-size business aircraft market. The company was founded in April 1999 and is headquartered in Englewood, CO.