Head to Head Contrast: Loar (NYSE:LOAR) & Astronics (OTCMKTS:ATROB)

Astronics (OTCMKTS:ATROB) and Loar (NYSE:LOAR) are both mid-cap aerospace companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Valuation & Earnings

This table compares Astronics and Loar”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astronics	$862.13 million	3.52	$29.36 million	$0.98	71.94
Loar	$496.28 million	15.24	$72.15 million	$0.71	113.80

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Astronics and Loar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astronics	0	0	0	0	0.00
Loar	0	2	4	0	2.67

Loar has a consensus price target of $86.20, suggesting a potential upside of 6.68%. Given Loar’s stronger consensus rating and higher possible upside, analysts clearly believe Loar is more favorable than Astronics.

Profitability

This table compares Astronics and Loar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astronics	5.12%	49.34%	12.10%
Loar	12.64%	8.47%	5.35%

Volatility & Risk

Astronics has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Loar has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Summary

Loar beats Astronics on 7 of the 12 factors compared between the two stocks.

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.

About Loar

Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, actuation devices, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was founded in 2017 and is headquartered in White Plains, New York.