AAR (NYSE:AIR – Get Free Report) and Applied Visual Sciences (OTCMKTS:APVS – Get Free Report) are both aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Institutional & Insider Ownership
90.7% of AAR shares are held by institutional investors. 3.6% of AAR shares are held by insiders. Comparatively, 33.0% of Applied Visual Sciences shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares AAR and Applied Visual Sciences”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AAR | $3.13 billion | 1.43 | $12.50 million | $4.51 | 24.95 |
| Applied Visual Sciences | N/A | N/A | N/A | N/A | N/A |
AAR has higher revenue and earnings than Applied Visual Sciences.
Analyst Ratings
This is a breakdown of recent ratings and price targets for AAR and Applied Visual Sciences, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AAR | 0 | 2 | 4 | 1 | 2.86 |
| Applied Visual Sciences | 0 | 0 | 0 | 0 | 0.00 |
AAR currently has a consensus price target of $131.20, indicating a potential upside of 16.58%. Given AAR’s stronger consensus rating and higher probable upside, equities analysts clearly believe AAR is more favorable than Applied Visual Sciences.
Risk and Volatility
AAR has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Applied Visual Sciences has a beta of 6.98, suggesting that its stock price is 598% more volatile than the S&P 500.
Profitability
This table compares AAR and Applied Visual Sciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AAR | 5.46% | 12.39% | 5.68% |
| Applied Visual Sciences | N/A | N/A | N/A |
Summary
AAR beats Applied Visual Sciences on 9 of the 11 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 Applied Visual Sciences
Applied Visual Sciences, Inc., a software technology company, designs and develops computer-vision detection solutions based on image processing science for aviation/homeland security and healthcare markets. It utilizes imaging technologies and analytics to create integrated information management technology products and services that address problems for corporations and governmental agencies. The company offers PinPoint, an intelligent computer-vision automated target recognition technology for the detection of guns, explosives, and other threat items contained in baggage in the airport environment or for building security applications; and Signature Mapping platform technology for use in the imaging field of diagnostic radiology and pathology. It also provides Signature Mapping Detection System, an automated hardware-software laboratory solution used to operate various infectious disease applications through multi-threaded detection algorithms. In addition, the company offers Signature Mapping Tuberculosis Detection software, an automated hardware and software technology platform; and Signature Mapping Breast Cancer Detection, a breast cancer detection solution. Applied Visual Sciences, Inc. markets its products through direct sales and indirect distribution channels worldwide. The company was formerly known as Guardian Technologies International, Inc. and changed its name to Applied Visual Sciences, Inc. in July 2010. Applied Visual Sciences, Inc. was founded in 1989 and is based in Leesburg, Virginia.
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