Head-To-Head Contrast: Astrotech (NASDAQ:ASTC) vs. AAR (NYSE:AIR)

Astrotech (NASDAQ:ASTC) and AAR (NYSE:AIR) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares Astrotech and AAR”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astrotech	$1.05 million	4.78	-$13.85 million	($8.34)	-0.34
AAR	$2.78 billion	1.76	$12.50 million	$4.51	27.26

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

Profitability

This table compares Astrotech and AAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astrotech	-1,163.89%	-68.53%	-57.30%
AAR	5.46%	12.39%	5.68%

Analyst Ratings

This is a breakdown of current ratings and target prices for Astrotech and AAR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astrotech	1	0	0	0	1.00
AAR	0	2	5	0	2.71

AAR has a consensus price target of $131.20, suggesting a potential upside of 6.71%. Given AAR’s stronger consensus rating and higher possible upside, analysts plainly believe AAR is more favorable than Astrotech.

Risk and Volatility

Astrotech has a beta of -0.12, meaning that its share price is 112% less volatile than the S&P 500. Comparatively, AAR has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Insider and Institutional Ownership

24.4% of Astrotech shares are held by institutional investors. Comparatively, 90.7% of AAR shares are held by institutional investors. 16.8% of Astrotech shares are held by company insiders. Comparatively, 3.6% of AAR shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

AAR beats Astrotech on 12 of the 14 factors compared between the two stocks.

About Astrotech

Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AgLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person's breath. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.

About AAR

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes. This segment also develops specific aircraft components and parts; and designs proprietary designated engineering representative repairs. The Integrated Solutions segment engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services; and flight hour component inventory and repair services. In addition, the segment provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating MRO workflows. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets; and containers and shelters for military and humanitarian tactical deployment activities, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters, as well as engages in provision of engineering, design, and system integration services for specialized command and control systems. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.