Analyzing Redwire (NYSE:RDW) & Airbus (OTCMKTS:EADSY)

Redwire (NYSE:RDW) and Airbus (OTCMKTS:EADSY) are both aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and target prices for Redwire and Airbus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	2	3	6	1	2.50
Airbus	0	7	5	0	2.42

Redwire presently has a consensus price target of $15.44, indicating a potential downside of 27.93%. Given Redwire’s stronger consensus rating and higher probable upside, equities analysts plainly believe Redwire is more favorable than Airbus.

Valuation & Earnings

This table compares Redwire and Airbus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwire	$335.38 million	12.27	-$226.55 million	($2.68)	-8.00
Airbus	$83.05 billion	1.95	$5.91 billion	$1.84	27.83

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

Profitability

This table compares Redwire and Airbus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redwire	-80.90%	-11.68%	-7.86%
Airbus	6.92%	20.90%	3.88%

Risk & Volatility

Redwire has a beta of 2.92, indicating that its share price is 192% more volatile than the S&P 500. Comparatively, Airbus has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Institutional & Insider Ownership

8.1% of Redwire shares are owned by institutional investors. Comparatively, 0.3% of Airbus shares are owned by institutional investors. 0.8% of Redwire shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Redwire beats Airbus 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 Airbus

Airbus SE, together with its subsidiaries, engages in the design, manufacture, and delivery of aerospace products, services, and solutions worldwide. It operates through three segments: Airbus, Airbus Helicopters, and Airbus Defence and Space. The Airbus segment develops, manufactures, markets, and sells commercial jet passenger aircraft, freighter aircraft, regional turboprop aircraft, and aircraft components, as well as provides aircraft conversion and related services. The Airbus Helicopters segment develops, manufactures, markets, and sells civil and military helicopters; and provides helicopter-related services. The Airbus Defence and Space segment designs, develops, delivers, and supports military air systems and related services. This segment also offers civil and defence space systems for telecommunications, earth observations, navigation, and science and orbital systems; missile and space launcher systems; and services around data processing from platforms, secure communication, and cyber security. The company was formerly known as Airbus Group SE and changed its name to Airbus SE in April 2017. Airbus SE was incorporated in 1998 and is headquartered in Leiden, the Netherlands.