Innovative Solutions and Support (NASDAQ:ISSC) has emerged as the more favorable stock compared to Astronics (NASDAQ:ATRO) based on a comprehensive analysis of various financial metrics. The evaluation considered factors such as institutional ownership, analyst ratings, profitability, and risk, ultimately highlighting Innovative Solutions and Support’s potential for growth.
Analyst Ratings Highlight Potential Upside
According to MarketBeat, Innovative Solutions and Support currently has a consensus price target of $16.25, suggesting a potential upside of 45.61%. In contrast, Astronics has a lower consensus price target of $61.00, indicating a potential upside of only 12.13%. This disparity in ratings reflects a more optimistic outlook for Innovative Solutions and Support among equities analysts.
In terms of earnings, Innovative Solutions and Support boasts higher profit margins despite generating lower revenue than Astronics. Astronics, while trading at a lower price-to-earnings ratio, is viewed as the more affordable option presently. The pricing dynamics suggest a competitive landscape where investors may weigh potential growth against current valuations.
Ownership and Volatility Comparisons
Institutional ownership plays a significant role in assessing a company’s stability and growth potential. Currently, 28.5% of Innovative Solutions and Support shares are held by institutional investors, whereas 56.7% of Astronics shares have institutional backing. Additionally, insider ownership stands at 4.4% for Innovative Solutions and Support, compared to 9.4% for Astronics. These figures indicate that Astronics benefits from stronger institutional support, which can be a positive signal for long-term growth.
When it comes to volatility, Innovative Solutions and Support has a beta of 0.77, making its share price 23% less volatile than the S&P 500 index. In contrast, Astronics has a beta of 1.12, suggesting its shares are 12% more volatile than the benchmark. This difference in volatility could influence investor decisions based on their risk tolerance.
In summary, Innovative Solutions and Support outperforms Astronics in nine out of the fifteen key factors analyzed. Investors may find this information crucial when considering potential investments in the aerospace sector.
Company Backgrounds
Innovative Solutions and Support, Inc., incorporated in 1988 and based in Exton, Pennsylvania, specializes in designing and manufacturing flight guidance systems, cockpit display systems, and other aviation-related technologies. The company serves various clients, including commercial air transport carriers, government agencies, and foreign militaries.
On the other hand, Astronics Corporation, established in 1968 and headquartered in East Aurora, New York, designs and manufactures a range of products for the aerospace and defense industries. Its operations are divided into two segments: Aerospace and Test Systems. The Aerospace segment supplies products such as lighting, electrical power systems, and avionics to commercial and military markets, while the Test Systems segment focuses on automated testing solutions.
As the market evolves, both companies will continue to play significant roles in the aerospace industry, with Innovative Solutions and Support currently positioning itself as the more attractive investment option based on recent analyses.
