Comparing Astrotech (NASDAQ:ASTC) and Loar (NYSE:LOAR)

Astrotech (NASDAQ:ASTC) and Loar (NYSE:LOAR) are both aerospace companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Insider and Institutional Ownership

24.4% of Astrotech shares are held by institutional investors. 16.8% of Astrotech shares are held by company insiders. Comparatively, 20.1% of Loar shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astrotech	1	0	0	0	1.00
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 probable upside, analysts plainly believe Loar is more favorable than Astrotech.

Valuation and Earnings

This table compares Astrotech and Loar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astrotech	$1.05 million	17.91	-$13.85 million	($8.41)	-1.24
Loar	$496.28 million	15.24	$72.15 million	$0.71	113.80

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

Volatility & Risk

Astrotech has a beta of 4.77, indicating that its share price is 377% more volatile than the S&P 500. Comparatively, Loar has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Astrotech	-1,397.82%	-81.85%	-65.46%
Loar	12.64%	8.47%	5.35%

Summary

Loar beats Astrotech on 11 of the 14 factors compared between the two stocks.

About Astrotech

Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AgLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person's breath. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.

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.