Head-To-Head Review: Loar (NYSE:LOAR) versus Astrotech (NASDAQ:ASTC)

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

Institutional and Insider Ownership

24.4% of Astrotech shares are owned by institutional investors. 16.8% of Astrotech shares are owned by insiders. Comparatively, 20.1% of Loar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astrotech	$1.05 million	15.87	-$13.85 million	($8.41)	-1.10
Loar	$496.28 million	13.80	$72.15 million	$0.71	103.02

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.

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%

Analyst Ratings

This is a breakdown of current recommendations 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	1	4	1	3.00

Loar has a consensus target price of $86.20, indicating a potential upside of 17.85%. Given Loar’s stronger consensus rating and higher possible upside, analysts clearly believe Loar is more favorable than Astrotech.

Summary

Loar beats Astrotech on 12 of the 15 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.