Analyzing ZenaTech (NASDAQ:ZENA) & AAR (NYSE:AIR)

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

Analyst Recommendations

This is a breakdown of current recommendations for ZenaTech and AAR, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZenaTech	1	1	2	0	2.25
AAR	0	2	4	1	2.86

ZenaTech presently has a consensus target price of $4.50, indicating a potential upside of 164.71%. AAR has a consensus target price of $135.60, indicating a potential upside of 3.78%. Given ZenaTech’s higher possible upside, equities analysts clearly believe ZenaTech is more favorable than AAR.

Valuation and Earnings

This table compares ZenaTech 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
ZenaTech	$9.24 million	4.14	-$32.36 million	($1.42)	-1.20
AAR	$3.31 billion	1.58	$187.70 million	$4.83	27.05

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

Volatility and Risk

ZenaTech has a beta of 7.21, indicating that its stock price is 621% more volatile than the S&P 500. Comparatively, AAR has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZenaTech	-332.51%	N/A	-78.90%
AAR	5.67%	12.67%	6.07%

Insider and Institutional Ownership

90.7% of AAR shares are owned by institutional investors. 3.1% of AAR shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

AAR beats ZenaTech on 12 of the 15 factors compared between the two stocks.

About ZenaTech

ZenaTech, Inc., an enterprise software technology company, develops cloud-based software applications in Canada. It provides cryptocurrency wallets and cloud-based enterprise software solutions for the agriculture industry; cloud-based enterprise software solutions for the medical records industry; safety and compliance management software and mobile solutions; field management software and mobile solutions; integrated cloud-based enterprise software and hardware drone technology solutions for various industries; and browser-based enterprise software applications for public safety. ZenaTech, Inc. was formerly known as ZenaDrone, Inc. and changed its name to ZenaTech, Inc. on October 5, 2020. The company was incorporated in 2017 and is based in Toronto, Canada.

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.