Contrasting Redwire (NYSE:RDW) and XTI Aerospace (NASDAQ:XTIA)

Redwire (NYSE:RDW) and XTI Aerospace (NASDAQ:XTIA) are both small-cap aerospace companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Volatility and Risk

Redwire has a beta of 2.45, indicating that its stock price is 145% more volatile than the S&P 500. Comparatively, XTI Aerospace has a beta of 4.84, indicating that its stock price is 384% more volatile than the S&P 500.

Valuation & Earnings

This table compares Redwire and XTI Aerospace”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwire	$304.10 million	2.94	-$114.32 million	($3.17)	-1.96
XTI Aerospace	$3.04 million	9.88	-$35.60 million	($39.23)	-0.04

XTI Aerospace has lower revenue, but higher earnings than Redwire. Redwire is trading at a lower price-to-earnings ratio than XTI Aerospace, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Redwire and XTI Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redwire	-70.32%	-16.24%	-7.20%
XTI Aerospace	-1,714.04%	-655.07%	-179.15%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Redwire and XTI Aerospace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	2	2	6	0	2.40
XTI Aerospace	1	0	0	1	2.50

Redwire presently has a consensus price target of $14.25, suggesting a potential upside of 129.76%. Given Redwire’s higher probable upside, research analysts plainly believe Redwire is more favorable than XTI Aerospace.

Institutional & Insider Ownership

8.1% of Redwire shares are held by institutional investors. Comparatively, 11.7% of XTI Aerospace shares are held by institutional investors. 2.6% of Redwire shares are held by company insiders. Comparatively, 7.4% of XTI Aerospace shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

XTI Aerospace beats Redwire on 8 of the 15 factors compared between the two stocks.

About Redwire

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft. It offers software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company microgravity payloads, radio frequency systems, antennas, star trackers, platforms, and in-space manufacturing and biotech facilities. Redwire Corporation is headquartered in Jacksonville, Florida.

About XTI Aerospace

XTI Aerospace, Inc. engages in the provision of aircraft manufacturing. It primarily focuses on the light and mid-size business aircraft market. The company was founded in April 1999 and is headquartered in Englewood, CO.