Astronics (OTCMKTS:ATROB) & Loar (NYSE:LOAR) Critical Review

Loar (NYSE:LOAR) and Astronics (OTCMKTS:ATROB) are both mid-cap aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Volatility and Risk

Loar has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Astronics has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Loar and Astronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loar	0	2	4	0	2.67
Astronics	0	0	0	0	0.00

Loar presently has a consensus price target of $83.00, indicating a potential upside of 15.96%. Given Loar’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Loar is more favorable than Astronics.

Profitability

This table compares Loar and Astronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loar	12.64%	8.47%	5.35%
Astronics	5.12%	49.34%	12.10%

Earnings & Valuation

This table compares Loar and Astronics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loar	$496.28 million	13.50	$72.15 million	$0.71	100.81
Astronics	$862.13 million	4.03	$29.36 million	$0.98	82.41

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

Summary

Loar beats Astronics on 7 of the 12 factors compared between the two stocks.

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.

About Astronics

Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. The company operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and mass transit industries, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. Astronics Corporation was incorporated in 1968 and is headquartered in East Aurora, New York.