Financial Review: Vertical Aerospace (NYSE:EVTL) & Conrad Industries (OTCMKTS:CNRD)

Conrad Industries (OTCMKTS:CNRD) and Vertical Aerospace (NYSE:EVTL) are both small-cap aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

0.6% of Conrad Industries shares are owned by institutional investors. Comparatively, 81.2% of Vertical Aerospace shares are owned by institutional investors. 31.5% of Conrad Industries shares are owned by company insiders. Comparatively, 74.8% of Vertical Aerospace shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Conrad Industries and Vertical Aerospace”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Conrad Industries	$303.41 million	0.43	$11.23 million	$3.02	8.57
Vertical Aerospace	N/A	N/A	-$998.35 million	($48.92)	-0.11

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

Risk & Volatility

Conrad Industries has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Vertical Aerospace has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Conrad Industries and Vertical Aerospace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conrad Industries	0	0	0	0	0.00
Vertical Aerospace	1	0	6	0	2.71

Vertical Aerospace has a consensus target price of $11.80, suggesting a potential upside of 110.53%. Given Vertical Aerospace’s stronger consensus rating and higher possible upside, analysts clearly believe Vertical Aerospace is more favorable than Conrad Industries.

Profitability

This table compares Conrad Industries and Vertical Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Conrad Industries	4.54%	17.11%	9.83%
Vertical Aerospace	N/A	N/A	-489.91%

Summary

Conrad Industries beats Vertical Aerospace on 7 of the 13 factors compared between the two stocks.

About Conrad Industries

Conrad Industries, Inc. engages in the construction, conversion, and repair of various steel and aluminum marine vessels in the United States. The company builds harbor tugs; specialty barges, such as crane, deck, ABS class, dry bulk cargo, aggregate, and well stim barges; inland tank, LPG inland tank, LPG pressure, LPG tank, and DS tank barges; and offshore support vessels, including liftboats, crew boats, offshore supply vessels, and offshore tugs, as well as other support equipment, such as deck and crane barges. It also builds inland pushboats comprising inland towboats, inland river push boats, and towboats; and ferries, which consist of passenger, and passenger and vehicle ferries. In addition, the company offers repairs and conversions, including electrical, mechanical, propulsion, and hull repairs to large-scale conversions of ships and barges; and engages in the fabrication of modular components for offshore floating production, storage, and offloading vessels, as well as drilling rigs. The company was founded in 1948 and is headquartered in Morgan City, Louisiana.

About Vertical Aerospace

Vertical Aerospace Ltd., an aerospace and technology company, engages in designing, manufacturing, and selling zero operating emission electric vertical takeoff and landing (eVTOL) aircraft for use in the advanced air mobility in the United Kingdom. It offers VX4, an eVTOL aircraft. Vertical Aerospace Ltd. was founded in 2016 and is headquartered in Bristol, the United Kingdom.