Textron (NYSE:TXT) & Redwire (NYSE:RDW) Head to Head Analysis

Textron (NYSE:TXT) and Redwire (NYSE:RDW) are both aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of recent ratings and target prices for Textron and Redwire, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Textron	0	9	3	1	2.38
Redwire	2	2	8	0	2.50

Textron presently has a consensus price target of $98.18, suggesting a potential upside of 7.33%. Redwire has a consensus price target of $13.89, suggesting a potential upside of 34.13%. Given Redwire’s stronger consensus rating and higher possible upside, analysts clearly believe Redwire is more favorable than Textron.

Insider and Institutional Ownership

86.0% of Textron shares are held by institutional investors. Comparatively, 8.1% of Redwire shares are held by institutional investors. 1.9% of Textron shares are held by company insiders. Comparatively, 0.8% of Redwire shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Textron and Redwire’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Textron	6.22%	14.63%	6.33%
Redwire	-67.55%	-13.04%	-7.82%

Earnings & Valuation

This table compares Textron and Redwire”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Textron	$14.80 billion	1.08	$921.00 million	$5.11	17.90
Redwire	$335.38 million	5.93	-$226.55 million	($2.37)	-4.37

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

Risk and Volatility

Textron has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Redwire has a beta of 2.49, meaning that its stock price is 149% more volatile than the S&P 500.

Summary

Textron beats Redwire on 10 of the 15 factors compared between the two stocks.

About Textron

Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates through six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts. The Bell segment supplies military and commercial helicopters, tiltrotor aircrafts, and related spare parts and services. The Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles. The Industrial segment offers blow-molded solutions, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, plastic tanks for catalytic reduction systems, and battery housing systems for use in electric vehicles primarily to automobile original equipment manufacturers (OEMs); and golf cars, off-road utility vehicles, powersports products, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The Textron eAviation segment manufactures and sells light aircraft and gliders with electric and combustion engines; and provides other research and development initiatives related to sustainable aviation solutions. The Finance segment offers financing services to purchase new and pre-owned aviation aircraft and Bell helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.

About Redwire

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft. It offers software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company microgravity payloads, radio frequency systems, antennas, star trackers, platforms, and in-space manufacturing and biotech facilities. Redwire Corporation is headquartered in Jacksonville, Florida.