New Horizon Aircraft (NASDAQ:HOVR – Get Free Report) and Butler National (OTCMKTS:BUKS – Get Free Report) are both small-cap aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.
Profitability
This table compares New Horizon Aircraft and Butler National’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Horizon Aircraft | N/A | -230.87% | 4.72% |
| Butler National | 16.60% | 22.23% | 11.27% |
Earnings and Valuation
This table compares New Horizon Aircraft and Butler National”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Horizon Aircraft | N/A | N/A | $5.20 million | N/A | N/A |
| Butler National | $83.97 million | 2.29 | $12.55 million | $0.21 | 11.43 |
Butler National has higher revenue and earnings than New Horizon Aircraft.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for New Horizon Aircraft and Butler National, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Horizon Aircraft | 1 | 0 | 1 | 1 | 2.67 |
| Butler National | 0 | 0 | 0 | 0 | 0.00 |
New Horizon Aircraft presently has a consensus target price of $11.00, indicating a potential upside of 511.11%. Given New Horizon Aircraft’s stronger consensus rating and higher probable upside, equities research analysts plainly believe New Horizon Aircraft is more favorable than Butler National.
Insider and Institutional Ownership
66.0% of New Horizon Aircraft shares are held by institutional investors. Comparatively, 5.0% of Butler National shares are held by institutional investors. 10.8% of New Horizon Aircraft shares are held by insiders. Comparatively, 17.6% of Butler National shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
New Horizon Aircraft has a beta of 2.94, suggesting that its stock price is 194% more volatile than the S&P 500. Comparatively, Butler National has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.
Summary
New Horizon Aircraft beats Butler National on 7 of the 13 factors compared between the two stocks.
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.
About Butler National
Butler National Corporation, together with its subsidiaries, designs, engineers, manufactures, sells, integrates, installs, repairs, modifies, overhauls, services, and distributes a portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies, and systems in North America, Europe, the Middle East, Asia, and internationally. It operates through two segments, Aerospace Products and Professional Services. The Aerospace Products segment provides aircraft modifications to business-size aircraft, which include passenger-to-freighter configuration, radar systems, addition of aerial photography capabilities, search and rescue, environmental research, mapping, intelligence surveillance reconnaissance modifications, and stability enhancing modifications for Learjet, Beechcraft, and Cessna aircraft along with other specialized modifications. This segment manufactures, sells, and services electronics for weapon control systems that are used on government aircraft and vehicles; and sells, installs, and repairs aircraft avionics equipment, including airplane radio equipment and flight control systems, as well as troubleshoots and repairs autopilot systems. Its Professional Services segment manages Boot Hill Casino and Resort, a gaming, dining, and entertainment facility in Dodge City, Kansas. The company acquires, refurbishes, and sells airplanes, primarily Learjets; owns properties; and operates a management consulting and administrative services firm that provides business planning and financial coordination to Indian tribes interested in owning and operating casinos. It serves the aviation industry, including owners and operators of private and commercial business and government aircraft and suppliers. Butler National Corporation was incorporated in 1960 and is headquartered in New Century, Kansas.
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