Head to Head Analysis: Innovative Solutions and Support (NASDAQ:ISSC) and Rolls-Royce Holdings PLC (OTCMKTS:RYCEY)

Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) and Innovative Solutions and Support (NASDAQ:ISSC) are both aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Earnings and Valuation

This table compares Rolls-Royce Holdings PLC and Innovative Solutions and Support”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rolls-Royce Holdings PLC	$24.16 billion	5.85	$3.22 billion	N/A	N/A
Innovative Solutions and Support	$84.30 million	3.90	$15.63 million	$0.87	21.25

Rolls-Royce Holdings PLC has higher revenue and earnings than Innovative Solutions and Support.

Risk and Volatility

Rolls-Royce Holdings PLC has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Innovative Solutions and Support has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Rolls-Royce Holdings PLC and Innovative Solutions and Support, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rolls-Royce Holdings PLC	0	2	2	1	2.80
Innovative Solutions and Support	0	1	1	4	3.50

Innovative Solutions and Support has a consensus price target of $16.25, indicating a potential downside of 12.11%. Given Innovative Solutions and Support’s stronger consensus rating and higher possible upside, analysts plainly believe Innovative Solutions and Support is more favorable than Rolls-Royce Holdings PLC.

Profitability

This table compares Rolls-Royce Holdings PLC and Innovative Solutions and Support’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rolls-Royce Holdings PLC	N/A	N/A	N/A
Innovative Solutions and Support	18.54%	26.52%	16.12%

Institutional & Insider Ownership

0.1% of Rolls-Royce Holdings PLC shares are owned by institutional investors. Comparatively, 28.5% of Innovative Solutions and Support shares are owned by institutional investors. 4.4% of Innovative Solutions and Support shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Innovative Solutions and Support beats Rolls-Royce Holdings PLC on 8 of the 13 factors compared between the two stocks.

About Rolls-Royce Holdings PLC

Rolls-Royce Holdings plc develops and delivers complex power and propulsion solutions for air, sea, and land in the United Kingdom and internationally. The company operates through four segments: Civil Aerospace, Defence, Power Systems, and New Markets. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services. The Power Systems segment engages in the development, manufacture, marketing, and sale of integrated solutions for onsite power and propulsion under the mtu brand name. The New Markets segment develops, manufactures, and sells small modular reactor and new electrical power solutions. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom.

About Innovative Solutions and Support

Innovative Solutions and Support, Inc., a systems integrator, designs, develops, manufactures, sells, and services flight guidance, autothrottles, and cockpit display systems in the United States and internationally. It offers flat panel display systems that replicate the display of analog or digital displays on one screen and replace existing displays in legacy aircraft, as well as used for security monitoring on-board aircraft and as tactical workstations on military aircraft; and flight deck management system, a navigation and performance computer that upgrade for commercial air transport aircraft. The company also provides integrated standby units, which incorporate the measurement and display of attitude, altitude, airspeed, and navigation data into a single backup navigation instrument for military, commercial air transport, and corporate/general aviation applications. In addition, it offers digital air data computers that calculate various air data parameters, such as altitude, airspeed, vertical speed, angle of attack, and other information; integrated air data computers and display units, which calculate and convey air data information; altitude displays that convey aircraft altitude measurements; airspeed displays that convey various airspeed measurements; and altitude alerters. Further, the company offers the engine and fuel displays that convey information related to fuel and oil levels, and engine activity, including oil and hydraulic pressure and temperature; integrated global navigation systems; ThrustSense, a full regime autothrottle; and utility management systems. It serves commercial air transport carriers and corporate/general aviation companies, the Department of Defense and its commercial contractors, aircraft operators, aircraft modification centers, government agencies, and foreign militaries, as well as original equipment manufacturers. Innovative Solutions and Support, Inc. was incorporated in 1988 and is based in Exton, Pennsylvania.