Hexcel (NYSE:HXL – Get Free Report) and XTI Aerospace (NASDAQ:XTIA – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.
Risk & Volatility
Hexcel has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, XTI Aerospace has a beta of 4.95, indicating that its share price is 395% more volatile than the S&P 500.
Profitability
This table compares Hexcel and XTI Aerospace’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hexcel | 8.50% | 13.57% | 6.41% |
| XTI Aerospace | -85.83% | -2,044.78% | -62.90% |
Valuation and Earnings
This table compares Hexcel 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 | |
| Hexcel | $1.89 billion | 3.24 | $109.40 million | $2.23 | 36.37 |
| XTI Aerospace | $22.49 million | 1.83 | -$68.76 million | ($2.34) | -0.46 |
Hexcel has higher revenue and earnings than XTI Aerospace. XTI Aerospace is trading at a lower price-to-earnings ratio than Hexcel, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
95.5% of Hexcel shares are owned by institutional investors. Comparatively, 11.7% of XTI Aerospace shares are owned by institutional investors. 1.8% of Hexcel shares are owned by insiders. Comparatively, 7.4% of XTI Aerospace shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Hexcel and XTI Aerospace, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hexcel | 0 | 9 | 4 | 1 | 2.43 |
| XTI Aerospace | 1 | 0 | 1 | 0 | 2.00 |
Hexcel currently has a consensus price target of $101.67, suggesting a potential upside of 25.35%. XTI Aerospace has a consensus price target of $2.00, suggesting a potential upside of 86.92%. Given XTI Aerospace’s higher probable upside, analysts plainly believe XTI Aerospace is more favorable than Hexcel.
Summary
Hexcel beats XTI Aerospace on 12 of the 15 factors compared between the two stocks.
About Hexcel
Hexcel Corporation develops, manufactures, and markets carbon fibers, structural reinforcements, honeycomb structures, resins, and composite materials and parts for use in commercial aerospace, space and defense, and industrial applications. It operates through two segments, Composite Materials and Engineered Products. The Composite Materials segment manufactures and markets fabrics, multi-axials, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military and commercial aircraft, wind turbine blades, recreational products, and other industrial applications, as well as in automotive, marine, and rail transportation. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, rotorcraft blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components used in rotorcraft blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings; and RF interference control products for military and aerospace applications. This segment also provides interference control materials, structural composites, and services; dielectric absorber foams; magnetic absorbers; and thermoplastics for commercial and defense applications. The company sells its products directly through its managers, product managers, and sales personnel, as well as through independent distributors in the Americas, Europe, the Asia Pacific, India, and Africa. Hexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut.
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.
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