Comparing StandardAero (SARO) and The Competition

StandardAero (NYSE:SARO) is one of 33 public companies in the “AEROSP/DEFENSE” industry, but how does it compare to its peers? We will compare StandardAero to similar companies based on the strength of its earnings, profitability, dividends, risk, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

53.5% of shares of all “AEROSP/DEFENSE” companies are owned by institutional investors. 1.9% of StandardAero shares are owned by insiders. Comparatively, 10.0% of shares of all “AEROSP/DEFENSE” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for StandardAero and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StandardAero	0	3	5	1	2.78
StandardAero Competitors	405	2172	3396	125	2.53

StandardAero currently has a consensus price target of $34.67, indicating a potential upside of 30.97%. As a group, “AEROSP/DEFENSE” companies have a potential upside of 1.44%. Given StandardAero’s stronger consensus rating and higher possible upside, analysts clearly believe StandardAero is more favorable than its peers.

Profitability

This table compares StandardAero and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StandardAero	2.37%	8.87%	2.98%
StandardAero Competitors	-957.17%	-50.06%	-10.72%

Earnings and Valuation

This table compares StandardAero and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
StandardAero	$5.62 billion	$10.97 million	64.56
StandardAero Competitors	$19.16 billion	$730.78 million	10.62

StandardAero’s peers have higher revenue and earnings than StandardAero. StandardAero is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

StandardAero beats its peers on 7 of the 12 factors compared.

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.