Critical Analysis: Redwire (RDW) & Its Rivals

Redwire (NYSE:RDW) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its competitors? We will compare Redwire to related businesses based on the strength of its analyst recommendations, dividends, risk, earnings, institutional ownership, profitability and valuation.

Institutional & Insider Ownership

8.1% of Redwire shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 0.8% of Redwire shares are held by insiders. Comparatively, 11.8% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Redwire has a beta of 3.15, suggesting that its share price is 215% more volatile than the S&P 500. Comparatively, Redwire’s competitors have a beta of 1.31, suggesting that their average share price is 31% more volatile than the S&P 500.

Profitability

This table compares Redwire and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redwire	-52.36%	-9.20%	-7.29%
Redwire Competitors	-347.37%	-49.10%	-4.38%

Valuation and Earnings

This table compares Redwire and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Redwire	$431.88 million	-$226.55 million	-6.69
Redwire Competitors	$8.45 billion	$569.01 million	21.93

Redwire’s competitors have higher revenue and earnings than Redwire. Redwire is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Redwire and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	2	5	6	1	2.43
Redwire Competitors	2162	8279	12802	581	2.50

Redwire currently has a consensus price target of $14.28, indicating a potential upside of 69.47%. As a group, “Aerospace & Defense” companies have a potential upside of 27.40%. Given Redwire’s higher possible upside, analysts clearly believe Redwire is more favorable than its competitors.

Summary

Redwire competitors beat Redwire on 8 of the 13 factors compared.

Redwire Company Profile

Redwire Corporation is an aerospace and defense technology company that develops products and services for space missions and national security programs. Its offerings include spacecraft components, deployable solar arrays and antennas, sensors, avionics, and systems used for navigation and communications. The company also provides engineering, spacecraft manufacturing, and in-space research and manufacturing capabilities. Its technologies support government and commercial customers, including satellite operators and space agencies.