Contrasting Astronics (NASDAQ:ATRO) and AAR (NYSE:AIR)

Astronics (NASDAQ:ATRO – Get Free Report) and AAR (NYSE:AIR – Get Free Report) are both mid-cap aerospace companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Analyst Ratings

This is a summary of current ratings and recommmendations for Astronics and AAR, as provided by MarketBeat.

Astronics currently has a consensus price target of $66.67, indicating a potential upside of 0.78%. AAR has a consensus price target of $101.25, indicating a potential upside of 4.37%. Given AAR’s higher possible upside, analysts clearly believe AAR is more favorable than Astronics.

Profitability

This table compares Astronics and AAR’s net margins, return on equity and return on assets.

Institutional and Insider Ownership

56.7% of Astronics shares are held by institutional investors. Comparatively, 90.7% of AAR shares are held by institutional investors. 10.8% of Astronics shares are held by company insiders. Comparatively, 3.6% of AAR shares are held 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.

Earnings and Valuation

This table compares Astronics and AAR”s revenue, earnings per share and valuation.

AAR has higher revenue and earnings than Astronics. Astronics is trading at a lower price-to-earnings ratio than AAR, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Astronics has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, AAR has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Summary

AAR beats Astronics on 8 of the 14 factors compared between the two stocks.

About Astronics

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Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. The company operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and mass transit industries, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. Astronics Corporation was incorporated in 1968 and is headquartered in East Aurora, New York.

About AAR

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AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes. This segment also develops specific aircraft components and parts; and designs proprietary designated engineering representative repairs. The Integrated Solutions segment engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services; and flight hour component inventory and repair services. In addition, the segment provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating MRO workflows. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets; and containers and shelters for military and humanitarian tactical deployment activities, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters, as well as engages in provision of engineering, design, and system integration services for specialized command and control systems. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.