Rheinmetall (OTCMKTS:RNMBY – Get Free Report) and Loar (NYSE:LOAR – Get Free Report) are both aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Volatility and Risk
Rheinmetall has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Loar has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.
Valuation & Earnings
This table compares Rheinmetall 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 | |
| Rheinmetall | $11.24 billion | 5.41 | $787.45 million | $1.85 | 141.51 |
| Loar | $496.28 million | 11.59 | $72.15 million | $0.71 | 86.52 |
Rheinmetall has higher revenue and earnings than Loar. Loar is trading at a lower price-to-earnings ratio than Rheinmetall, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Rheinmetall and Loar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rheinmetall | 7.08% | 21.40% | 7.13% |
| Loar | 12.64% | 8.47% | 5.35% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Rheinmetall and Loar, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rheinmetall | 1 | 0 | 6 | 1 | 2.88 |
| Loar | 0 | 2 | 4 | 0 | 2.67 |
Loar has a consensus target price of $83.00, indicating a potential upside of 35.12%. Given Loar’s higher probable upside, analysts clearly believe Loar is more favorable than Rheinmetall.
Summary
Rheinmetall beats Loar on 9 of the 13 factors compared between the two stocks.
About Rheinmetall
Rheinmetall AG provides mobility and security technologies worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and Trade. The Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides firepower and protection solutions, such as weapons and munition, protection systems, propellants and international projects and services. The Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, and cyberspace protection solutions, and training and simulation solutions. Its products include air defense systems; soldier systems; command, control, and reconnaissance systems; fire control systems; sensors; and simulations for the army, air force, navy, and civil applications. The Sensors and Actuators segment provides a portfolio of products comprising exhaust gas recirculation systems; throttle valves, control dampers, and exhaust flaps for electromotors; solenoid valves; actuators and valve train systems; oil, water, and vacuum pumps for passenger cars, commercial vehicles, and light and heavy-duty off-road applications; and industrial solutions. The Materials and Trade segment develops system components for the basic motors, such as engine blocks, structural components, and cylinder heads; plain bearings, and bushes; and replacement parts. It also engages in the aftermarket activities. The company was formerly known as Rheinmetall Berlin AG and changed its name to Rheinmetall AG in 1996. Rheinmetall AG was founded in 1889 and is headquartered in Düsseldorf, Germany.
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.
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