Spirit Aerosystems and AerSale: A Detailed Stock Comparison

In a comparative analysis of two aerospace companies, Spirit Aerosystems (NYSE:SPR) and AerSale (NASDAQ:ASLE), investors are weighing their options based on various financial metrics. This assessment considers factors such as revenue, earnings, profitability, analyst ratings, volatility, and institutional ownership to determine which stock may offer a better investment opportunity.

Earnings and Valuation Insights

The financial metrics reveal notable differences between the two companies. Spirit Aerosystems reported a gross revenue of $6.39 billion but faced a significant net income loss of $2.14 billion, resulting in an earnings per share (EPS) of ($22.11). In contrast, AerSale generated a revenue of $345.07 million with a net income of $5.85 million, translating to an EPS of $0.13.

When examining valuation metrics, Spirit Aerosystems has a price-to-sales ratio of 0.65 and a price-to-earnings ratio of -1.60, indicating it is currently more affordable than AerSale, which boasts a price-to-sales ratio of 0.82 and a price-to-earnings ratio of 46.15. Although AerSale has lower overall revenue, its profitability metrics suggest stronger earnings potential.

Ownership and Analyst Opinions

Looking at ownership structures, Spirit Aerosystems has a robust institutional ownership of 93.6%, while AerSale has 69.5% of its shares held by institutional investors. Insider ownership also differs significantly, with 0.9% of Spirit Aerosystems shares held by company insiders compared to 19.2% for AerSale. This strong institutional backing for both firms suggests confidence in their long-term performance.

Analyst ratings further highlight the differing outlooks for the two stocks. Current ratings, according to MarketBeat.com, show that Spirit Aerosystems has a consensus price target of $38.63, which indicates a potential upside of 9.46%. AerSale, on the other hand, has a higher consensus price target of $7.00, suggesting a more attractive potential upside of 16.67%. This indicates that analysts generally favor AerSale as a more promising investment.

Volatility and Profitability Comparison

In terms of volatility, Spirit Aerosystems has a beta of 1.7, suggesting it is 70% more volatile than the S&P 500. Conversely, AerSale has a beta of 0.24, indicating its stock price is 76% less volatile than the market index. This substantial difference in beta reflects varying risk profiles between the two companies.

Profitability metrics also show significant contrasts. Spirit Aerosystems has a net margin of -37.46% and a return on assets of -26.28%, while AerSale achieves a net margin of 1.73% and a return on equity of 2.10%. Such metrics indicate that AerSale is currently managing its operations more efficiently than Spirit Aerosystems.

In summary, AerSale outperforms Spirit Aerosystems across several key financial indicators. It holds advantages in profitability and analyst ratings, making it an appealing option for investors seeking growth in the aerospace sector.

Company Overviews

Spirit Aerosystems, founded in 1927 and headquartered in Wichita, Kansas, engages in the design, engineering, manufacture, and marketing of commercial aerostructures. The company operates through three segments: Commercial, Defense & Space, and Aftermarket, producing a wide range of components for both commercial and military applications.

AerSale, established in 2008 and based in Coral Gables, Florida, focuses on providing aftermarket solutions for commercial aircraft and engines. The company operates in two segments: Asset Management Solutions and Technical Operations (TechOps), offering services such as aircraft leasing, maintenance, and repair to airlines and government contractors worldwide.

As investors consider these two aerospace firms, the contrasting financial landscapes underscore the importance of thorough analysis in the pursuit of profitable opportunities.