Astronics (NASDAQ:ATRO) and Innovative Solutions and Support (NASDAQ:ISSC) Head-To-Head Survey

Innovative Solutions and Support (NASDAQ:ISSC) and Astronics (NASDAQ:ATRO) are both small-cap aerospace companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Volatility & Risk

Innovative Solutions and Support has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Astronics has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Profitability

This table compares Innovative Solutions and Support and Astronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovative Solutions and Support	15.10%	23.86%	14.15%
Astronics	-0.37%	29.65%	10.15%

Insider and Institutional Ownership

28.5% of Innovative Solutions and Support shares are held by institutional investors. Comparatively, 56.7% of Astronics shares are held by institutional investors. 4.4% of Innovative Solutions and Support shares are held by insiders. Comparatively, 10.8% of Astronics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Innovative Solutions and Support and Astronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Solutions and Support	0	1	2	2	3.20
Astronics	1	0	4	1	2.83

Innovative Solutions and Support currently has a consensus price target of $16.25, suggesting a potential upside of 52.73%. Astronics has a consensus price target of $61.00, suggesting a potential upside of 14.77%. Given Innovative Solutions and Support’s stronger consensus rating and higher possible upside, analysts plainly believe Innovative Solutions and Support is more favorable than Astronics.

Earnings & Valuation

This table compares Innovative Solutions and Support and Astronics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Solutions and Support	$47.20 million	3.98	$7.00 million	$0.66	16.12
Astronics	$795.43 million	2.38	-$16.22 million	($0.09)	-590.56

Innovative Solutions and Support has higher earnings, but lower revenue than Astronics. Astronics is trading at a lower price-to-earnings ratio than Innovative Solutions and Support, indicating that it is currently the more affordable of the two stocks.

Summary

Innovative Solutions and Support beats Astronics on 9 of the 15 factors compared between the two stocks.

About Innovative Solutions and Support

Innovative Solutions and Support, Inc., a systems integrator, designs, develops, manufactures, sells, and services flight guidance, autothrottles, and cockpit display systems in the United States and internationally. It offers flat panel display systems that replicate the display of analog or digital displays on one screen and replace existing displays in legacy aircraft, as well as used for security monitoring on-board aircraft and as tactical workstations on military aircraft; and flight deck management system, a navigation and performance computer that upgrade for commercial air transport aircraft. The company also provides integrated standby units, which incorporate the measurement and display of attitude, altitude, airspeed, and navigation data into a single backup navigation instrument for military, commercial air transport, and corporate/general aviation applications. In addition, it offers digital air data computers that calculate various air data parameters, such as altitude, airspeed, vertical speed, angle of attack, and other information; integrated air data computers and display units, which calculate and convey air data information; altitude displays that convey aircraft altitude measurements; airspeed displays that convey various airspeed measurements; and altitude alerters. Further, the company offers the engine and fuel displays that convey information related to fuel and oil levels, and engine activity, including oil and hydraulic pressure and temperature; integrated global navigation systems; ThrustSense, a full regime autothrottle; and utility management systems. It serves commercial air transport carriers and corporate/general aviation companies, the Department of Defense and its commercial contractors, aircraft operators, aircraft modification centers, government agencies, and foreign militaries, as well as original equipment manufacturers. Innovative Solutions and Support, Inc. was incorporated in 1988 and is based in Exton, Pennsylvania.

About Astronics

Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. The company operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and mass transit industries, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. Astronics Corporation was incorporated in 1968 and is headquartered in East Aurora, New York.