Comparing BWX Technologies (NYSE:BWXT) & Innovative Solutions and Support (NASDAQ:ISSC)

BWX Technologies (NYSE:BWXT) and Innovative Solutions and Support (NASDAQ:ISSC) are both aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BWX Technologies	10.20%	31.33%	9.62%
Innovative Solutions and Support	18.82%	27.52%	16.28%

Earnings & Valuation

This table compares BWX Technologies and Innovative Solutions and Support”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BWX Technologies	$3.38 billion	5.25	$328.95 million	$3.74	51.76
Innovative Solutions and Support	$84.30 million	3.92	$15.63 million	$0.94	19.66

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

Risk & Volatility

BWX Technologies has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Innovative Solutions and Support has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Institutional and Insider Ownership

94.4% of BWX Technologies shares are held by institutional investors. Comparatively, 28.5% of Innovative Solutions and Support shares are held by institutional investors. 0.6% of BWX Technologies shares are held by insiders. Comparatively, 5.9% of Innovative Solutions and Support shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BWX Technologies and Innovative Solutions and Support, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BWX Technologies	1	4	8	2	2.73
Innovative Solutions and Support	0	1	2	2	3.20

BWX Technologies presently has a consensus target price of $228.00, suggesting a potential upside of 17.78%. Innovative Solutions and Support has a consensus target price of $16.25, suggesting a potential downside of 12.07%. Given BWX Technologies’ higher probable upside, research analysts clearly believe BWX Technologies is more favorable than Innovative Solutions and Support.

Summary

BWX Technologies beats Innovative Solutions and Support on 10 of the 14 factors compared between the two stocks.

About BWX Technologies

BWX Technologies, Inc., together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.

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.