Reviewing New Horizon Aircraft (NASDAQ:HOVR) & Howmet Aerospace (NYSE:HWM)

Howmet Aerospace (NYSE:HWM) and New Horizon Aircraft (NASDAQ:HOVR) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Insider & Institutional Ownership

90.5% of Howmet Aerospace shares are owned by institutional investors. Comparatively, 66.0% of New Horizon Aircraft shares are owned by institutional investors. 1.0% of Howmet Aerospace shares are owned by company insiders. Comparatively, 10.8% of New Horizon Aircraft shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Howmet Aerospace	18.18%	29.21%	12.96%
New Horizon Aircraft	N/A	-230.87%	4.72%

Analyst Ratings

This is a breakdown of recent ratings for Howmet Aerospace and New Horizon Aircraft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Howmet Aerospace	0	4	16	1	2.86
New Horizon Aircraft	1	0	1	1	2.67

Howmet Aerospace currently has a consensus target price of $218.75, indicating a potential upside of 3.53%. New Horizon Aircraft has a consensus target price of $11.00, indicating a potential upside of 605.13%. Given New Horizon Aircraft’s higher possible upside, analysts clearly believe New Horizon Aircraft is more favorable than Howmet Aerospace.

Risk and Volatility

Howmet Aerospace has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, New Horizon Aircraft has a beta of 2.94, meaning that its stock price is 194% more volatile than the S&P 500.

Valuation and Earnings

This table compares Howmet Aerospace 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
Howmet Aerospace	$7.43 billion	11.43	$1.16 billion	$3.56	59.35
New Horizon Aircraft	N/A	N/A	$5.20 million	N/A	N/A

Howmet Aerospace has higher revenue and earnings than New Horizon Aircraft.

Summary

Howmet Aerospace beats New Horizon Aircraft on 9 of the 12 factors compared between the two stocks.

About Howmet Aerospace

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally. It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The Engine Products segment offers airfoils and seamless rolled rings primarily for aircraft engines and industrial gas turbines; and rotating and structural parts. The Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners; and latches, bearings, fluid fittings, and installation tools. The Engineered Structures segment provides titanium ingots and mill products, aluminum and nickel forgings, and machined components and assemblies for aerospace and defense applications; and titanium forgings, extrusions, and forming and machining services for airframe, wing, aero-engine, and landing gear components. The Forged Wheels segment offers forged aluminum wheels and related products for heavy-duty trucks and commercial transportation markets. The company was formerly known as Arconic Inc. Howmet Aerospace Inc. was founded in 1888 and is based in Pittsburgh, Pennsylvania.

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.