Comparing Ballistic Recovery (OTCMKTS:BRSI) & AAR (NYSE:AIR)

AAR (NYSE:AIR) and Ballistic Recovery (OTCMKTS:BRSI) are both aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Volatility and Risk

AAR has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Ballistic Recovery has a beta of -1.54, indicating that its stock price is 254% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for AAR and Ballistic Recovery, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AAR	0	2	4	0	2.67
Ballistic Recovery	0	0	0	0	0.00

AAR currently has a consensus price target of $93.25, indicating a potential upside of 6.78%. Given AAR’s stronger consensus rating and higher possible upside, research analysts plainly believe AAR is more favorable than Ballistic Recovery.

Valuation and Earnings

This table compares AAR and Ballistic Recovery”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AAR	$2.78 billion	1.23	$12.50 million	$0.78	111.96
Ballistic Recovery	N/A	N/A	N/A	N/A	N/A

AAR has higher revenue and earnings than Ballistic Recovery.

Insider and Institutional Ownership

90.7% of AAR shares are owned by institutional investors. 3.6% of AAR shares are owned by company insiders. Comparatively, 45.3% of Ballistic Recovery shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AAR	1.01%	12.29%	5.16%
Ballistic Recovery	N/A	N/A	N/A

Summary

AAR beats Ballistic Recovery on 9 of the 10 factors compared between the two stocks.

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.

About Ballistic Recovery

Ballistic Recovery Systems Inc. develops and commercializes parachute systems in the United States. The company operates in three segments: Aviation, Defense, and Space. The Aviation segment designs, tests, and produces whole-aircraft emergency recovery parachute systems for the general aviation and recreational aircraft industries. The Defense segment designs, tests, and produces personnel parachute systems, precision guided aerial delivery systems, and cargo and whole-aircraft emergency recovery parachutes used in unmanned aerial vehicles and training aircrafts. The Space segment designs, tests, and produces entry, descent, and landing systems for various space applications, as well as manned and un-manned, planetary, and terrestrial space applications. The company also provides safety apparel. Ballistic Recovery Systems Inc. was founded in 1980 and is based in South Saint Paul, Minnesota.