Innovative Solutions and Support (NASDAQ:ISSC – Get Free Report) and AeroVironment (NASDAQ:AVAV – Get Free Report) are both aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.
Insider and Institutional Ownership
28.5% of Innovative Solutions and Support shares are held by institutional investors. Comparatively, 86.4% of AeroVironment shares are held by institutional investors. 4.4% of Innovative Solutions and Support shares are held by insiders. Comparatively, 0.8% of AeroVironment shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Innovative Solutions and Support and AeroVironment”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 | $77.43 million | 2.15 | $7.00 million | $0.66 | 14.29 |
| AeroVironment | $1.09 billion | 12.81 | $43.62 million | ($0.64) | -435.11 |
AeroVironment has higher revenue and earnings than Innovative Solutions and Support. AeroVironment 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.
Volatility & Risk
Innovative Solutions and Support has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, AeroVironment has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.
Profitability
This table compares Innovative Solutions and Support and AeroVironment’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% |
| AeroVironment | -4.14% | 4.67% | 3.73% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Innovative Solutions and Support and AeroVironment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innovative Solutions and Support | 0 | 1 | 1 | 2 | 3.25 |
| AeroVironment | 1 | 1 | 18 | 3 | 3.00 |
Innovative Solutions and Support presently has a consensus target price of $16.50, suggesting a potential upside of 74.97%. AeroVironment has a consensus target price of $358.19, suggesting a potential upside of 28.63%. Given Innovative Solutions and Support’s stronger consensus rating and higher possible upside, analysts clearly believe Innovative Solutions and Support is more favorable than AeroVironment.
Summary
Innovative Solutions and Support beats AeroVironment on 8 of the 15 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 AeroVironment
AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments. The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, the company offers small UAS products, including training, spare parts, product repair, product replacement, and the customer contracted operation. Further, it develops high-altitude pseudo-satellite UAS systems. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.
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