Head to Head Survey: Safran (OTCMKTS:SAFRY) versus New Horizon Aircraft (NASDAQ:HOVR)

Safran (OTCMKTS:SAFRY) and New Horizon Aircraft (NASDAQ:HOVR) are both aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

0.1% of Safran shares are held by institutional investors. Comparatively, 66.0% of New Horizon Aircraft shares are held by institutional investors. 11.1% of New Horizon Aircraft shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Safran and New Horizon Aircraft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safran	N/A	N/A	N/A
New Horizon Aircraft	N/A	-230.87%	4.72%

Valuation & Earnings

This table compares Safran and New Horizon Aircraft”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safran	$30.47 billion	4.87	-$721.76 million	N/A	N/A
New Horizon Aircraft	N/A	N/A	$5.20 million	N/A	N/A

New Horizon Aircraft has lower revenue, but higher earnings than Safran.

Analyst Recommendations

This is a summary of current ratings and price targets for Safran and New Horizon Aircraft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safran	0	3	3	2	2.88
New Horizon Aircraft	0	1	1	1	3.00

New Horizon Aircraft has a consensus target price of $11.00, suggesting a potential upside of 252.56%. Given New Horizon Aircraft’s stronger consensus rating and higher probable upside, analysts clearly believe New Horizon Aircraft is more favorable than Safran.

Risk & Volatility

Safran has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, New Horizon Aircraft has a beta of 2.79, indicating that its stock price is 179% more volatile than the S&P 500.

Summary

New Horizon Aircraft beats Safran on 7 of the 11 factors compared between the two stocks.

About Safran

Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide. The company operates through three segments: Aerospace Propulsion; Aircraft Equipment, Defense and Aerosystems; and Aircraft Interiors. The Aerospace Propulsion segment designs, develops, produces, and markets propulsion and mechanical power transmission systems for commercial aircraft, military transport, training and combat aircraft, civil and military helicopters, satellites, and drones; and offers maintenance, repair, and overhaul (MRO) services, as well as sells spare parts. The Aircraft Equipment, Defense and Aerosystems segment provides landing gears and brakes; nacelles and reversers; avionics, such as flight controls and onboard information systems; security systems, including evacuation slides and oxygen masks; onboard computers and fuel systems; electrical power management systems and related engineering services; and optronic equipment and sights, navigation equipment and sensors, infantry, and drones, as well as offers MRO services and sells spare parts. The Aircraft Interiors segment designs, develops, manufactures, and markets aircraft seats for passengers and crew; cabin equipment, overhead bins, class dividers, passenger service units, cabin interior solutions, chilling systems, galleys, electrical inserts, and trolleys and cargo equipment; and cabin and passenger solutions, such as water distribution equipment, lavatories, air systems, and in-flight entertainment and connectivity systems. Its products and services are used in civil and military aircraft, and helicopters. Safran SA was founded in 1896 and is based in Paris, France.

About New Horizon Aircraft

New Horizon Aircraft Ltd., an aerospace original equipment manufacturer company, focuses on designing and developing hybrid electric vertical takeoff and landing (eVTOL) aircraft for the regional air mobility market in the Uinted States. The company is developing Cavorite X7, a hybrid electric 7-seat aircraft that can take off and land vertically like and helicopter. New Horizon Aircraft Ltd. was founded in 2013 and is headquartered in Lindsay, Canada.