Lockheed Martin (NYSE:LMT) versus New Horizon Aircraft (NASDAQ:HOVR) Critical Analysis

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

Analyst Ratings

This is a summary of current ratings and recommmendations for New Horizon Aircraft and Lockheed Martin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Horizon Aircraft	1	0	1	1	2.67
Lockheed Martin	1	18	4	2	2.28

New Horizon Aircraft presently has a consensus price target of $11.00, indicating a potential upside of 566.67%. Lockheed Martin has a consensus price target of $506.67, indicating a potential upside of 4.80%. Given New Horizon Aircraft’s stronger consensus rating and higher possible upside, equities analysts clearly believe New Horizon Aircraft is more favorable than Lockheed Martin.

Profitability

This table compares New Horizon Aircraft and Lockheed Martin’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%
Lockheed Martin	5.73%	111.84%	11.85%

Insider & Institutional Ownership

66.0% of New Horizon Aircraft shares are owned by institutional investors. Comparatively, 74.2% of Lockheed Martin shares are owned by institutional investors. 10.8% of New Horizon Aircraft shares are owned by insiders. Comparatively, 0.1% of Lockheed Martin shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares New Horizon Aircraft and Lockheed Martin”s gross revenue, earnings per share (EPS) 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
Lockheed Martin	$71.04 billion	1.57	$5.34 billion	$17.91	26.99

Lockheed Martin has higher revenue and earnings than New Horizon Aircraft.

Volatility and Risk

New Horizon Aircraft has a beta of 2.95, indicating that its share price is 195% more volatile than the S&P 500. Comparatively, Lockheed Martin has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.

Summary

Lockheed Martin beats New Horizon Aircraft on 9 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 Lockheed Martin

Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. The company operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space segments. The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies. The Missiles and Fire Control segment provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; manned and unmanned ground vehicles; and energy management solutions. The Rotary and Mission Systems segment offers military and commercial helicopters, surface ships, sea and land-based missile defense systems, radar systems, sea and air-based mission and combat systems, command and control mission solutions, cyber solutions, and simulation and training solutions. The Space segment offers satellites; space transportation systems; strategic, advanced strike, and defensive systems; and classified systems and services in support of national security systems. This segment also provides network-enabled situational awareness and integrates space and ground global systems to help its customers gather, analyze, and securely distribute critical intelligence data. It serves primarily serves the U.S. government, as well as foreign military sales contracted through the U.S. government. The company was founded in 1912 and is based in Bethesda, Maryland.