Spirit AeroSystems (NYSE:SPR) & Loar (NYSE:LOAR) Critical Contrast

Spirit AeroSystems (NYSE:SPR) and Loar (NYSE:LOAR) are both mid-cap aerospace companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Spirit AeroSystems and Loar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spirit AeroSystems	0	16	2	0	2.11
Loar	0	1	3	0	2.75

Spirit AeroSystems currently has a consensus target price of $34.73, indicating a potential upside of 6.74%. Loar has a consensus target price of $75.75, indicating a potential upside of 2.84%. Given Spirit AeroSystems’ higher possible upside, equities research analysts plainly believe Spirit AeroSystems is more favorable than Loar.

Profitability

This table compares Spirit AeroSystems and Loar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spirit AeroSystems	-18.26%	N/A	-12.84%
Loar	N/A	N/A	N/A

Institutional & Insider Ownership

93.6% of Spirit AeroSystems shares are held by institutional investors. 0.9% of Spirit AeroSystems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Spirit AeroSystems 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
Spirit AeroSystems	$6.45 billion	0.59	-$616.10 million	($8.69)	-3.74
Loar	$358.10 million	18.45	N/A	N/A	N/A

Loar has lower revenue, but higher earnings than Spirit AeroSystems.

Summary

Loar beats Spirit AeroSystems on 5 of the 9 factors compared between the two stocks.

About Spirit AeroSystems

Spirit AeroSystems Holdings, Inc. engages in the design, engineering, manufacture, and marketing of commercial aerostructures worldwide. It operates through three segments: Commercial, Defense & Space, and Aftermarket. The Commercial segment offers forward, mid, and rear fuselage sections and systems, floor beams, nacelles, struts/pylons, horizontal and vertical stabilizers, flaps and slats flight control surfaces, wing structures, and wing systems. This segment primarily serves commercial and business/regional jet programs. The Defense & Space segment engages in the fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training on fuselage, strut, nacelle, and wing aerostructures; provision of missiles and hypersonics solutions, such as solid rocket motor throats, nozzles, re-entry vehicle thermal protections systems; forward cockpit and cabin, and fuselage work on rotorcraft aerostructures; and classified programs. This segment primarily serves U.S. Government defense programs. The Aftermarket segment provides maintenance, repair, and overhaul services; fuselage, strut, nacelle, and wing aerostructures spare parts; repair services for radome, flight control surfaces, and nacelles; rotable assets trading and leasing; and engineering services. This segment primarily serves both commercial and defense and space programs. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.

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.