Reviewing AeroVironment (NASDAQ:AVAV) and Sypris Solutions (NASDAQ:SYPR)

AeroVironment (NASDAQ:AVAV – Get Free Report) and Sypris Solutions (NASDAQ:SYPR – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Earnings and Valuation

This table compares AeroVironment and Sypris Solutions”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AeroVironment $1.98 billion 3.17 -$265.12 million ($2.34) -52.78
Sypris Solutions $119.89 million 0.23 -$6.34 million ($0.47) -2.57

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

Profitability

This table compares AeroVironment and Sypris Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AeroVironment -5.77% 4.04% 3.13%
Sypris Solutions -9.23% -67.14% -9.87%

Risk and Volatility

AeroVironment has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Sypris Solutions has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for AeroVironment and Sypris Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AeroVironment 1 5 19 2 2.81
Sypris Solutions 1 0 0 0 1.00

AeroVironment presently has a consensus target price of $223.86, suggesting a potential upside of 81.26%. Given AeroVironment’s stronger consensus rating and higher probable upside, research analysts clearly believe AeroVironment is more favorable than Sypris Solutions.

Institutional & Insider Ownership

86.4% of AeroVironment shares are owned by institutional investors. Comparatively, 44.7% of Sypris Solutions shares are owned by institutional investors. 0.8% of AeroVironment shares are owned by company insiders. Comparatively, 47.9% of Sypris Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

AeroVironment beats Sypris Solutions on 11 of the 14 factors compared between the two stocks.

About AeroVironment

(Get Free Report)

AeroVironment, Inc. develops uncrewed aircraft systems and other technology for defense, government and commercial customers. Its products include small drones used for reconnaissance and surveillance, as well as the Switchblade family of loitering munitions. The company also provides counter-drone systems, training, support and related services. Founded in 1971 by engineer and inventor Paul MacCready, AeroVironment has a history of developing aircraft and uncrewed systems. Its customers include U.S. government and military organizations, allied nations and commercial users.

About Sypris Solutions

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Sypris Solutions, Inc. is a diversified manufacturing and engineering company headquartered in Louisville, Kentucky. Through its operating businesses, the company provides components, assemblies and manufacturing services to customers in the commercial vehicle, automotive, industrial, energy, aerospace and defense markets. Sypris Technologies manufactures forged, machined and assembled components for vehicles and industrial equipment. Its products include drivetrain and transmission components, structural and precision-machined parts, and other specialized components used in commercial vehicles, off-highway equipment, energy systems and related industrial applications.

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