FTAI Aviation (NASDAQ:FTAI) versus Innovative Solutions and Support (NASDAQ:ISSC) Head-To-Head Comparison

FTAI Aviation (NASDAQ:FTAI) and Innovative Solutions and Support (NASDAQ:ISSC) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Volatility and Risk

FTAI Aviation has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Innovative Solutions and Support has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Dividends

FTAI Aviation pays an annual dividend of $2.00 per share and has a dividend yield of 1.0%. Innovative Solutions and Support pays an annual dividend of $2.00 per share and has a dividend yield of 10.8%. FTAI Aviation pays out 43.5% of its earnings in the form of a dividend. Innovative Solutions and Support pays out 190.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares FTAI Aviation and Innovative Solutions and Support”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTAI Aviation	$2.51 billion	8.04	$501.06 million	$4.60	42.67
Innovative Solutions and Support	$93.15 million	3.56	$15.63 million	$1.05	17.64

FTAI Aviation has higher revenue and earnings than Innovative Solutions and Support. Innovative Solutions and Support is trading at a lower price-to-earnings ratio than FTAI Aviation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for FTAI Aviation and Innovative Solutions and Support, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTAI Aviation	0	2	9	0	2.82
Innovative Solutions and Support	0	2	1	2	3.00

FTAI Aviation presently has a consensus price target of $320.11, suggesting a potential upside of 63.09%. Innovative Solutions and Support has a consensus price target of $16.25, suggesting a potential downside of 12.26%. Given FTAI Aviation’s higher possible upside, analysts clearly believe FTAI Aviation is more favorable than Innovative Solutions and Support.

Institutional and Insider Ownership

89.0% of FTAI Aviation shares are owned by institutional investors. Comparatively, 28.5% of Innovative Solutions and Support shares are owned by institutional investors. 1.4% of FTAI Aviation shares are owned by insiders. Comparatively, 5.9% of Innovative Solutions and Support shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares FTAI Aviation and Innovative Solutions and Support’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FTAI Aviation	15.94%	139.59%	11.26%
Innovative Solutions and Support	20.50%	30.53%	17.28%

Summary

FTAI Aviation beats Innovative Solutions and Support on 11 of the 17 factors compared between the two stocks.

About FTAI Aviation

FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers. As of December 31, 2023, this segment owned and managed 363 aviation assets consisting of 96 commercial aircraft and 267 engines, including eight aircraft and seventeen engines that were located in Russia. The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines. The company was founded in 2011 and is headquartered in New York, New York.

About Innovative Solutions and Support

Innovative Solutions and Support, Inc., a systems integrator, designs, develops, manufactures, sells, and services flight guidance, autothrottles, and cockpit display systems in the United States and internationally. It offers flat panel display systems that replicate the display of analog or digital displays on one screen and replace existing displays in legacy aircraft, as well as used for security monitoring on-board aircraft and as tactical workstations on military aircraft; and flight deck management system, a navigation and performance computer that upgrade for commercial air transport aircraft. The company also provides integrated standby units, which incorporate the measurement and display of attitude, altitude, airspeed, and navigation data into a single backup navigation instrument for military, commercial air transport, and corporate/general aviation applications. In addition, it offers digital air data computers that calculate various air data parameters, such as altitude, airspeed, vertical speed, angle of attack, and other information; integrated air data computers and display units, which calculate and convey air data information; altitude displays that convey aircraft altitude measurements; airspeed displays that convey various airspeed measurements; and altitude alerters. Further, the company offers the engine and fuel displays that convey information related to fuel and oil levels, and engine activity, including oil and hydraulic pressure and temperature; integrated global navigation systems; ThrustSense, a full regime autothrottle; and utility management systems. It serves commercial air transport carriers and corporate/general aviation companies, the Department of Defense and its commercial contractors, aircraft operators, aircraft modification centers, government agencies, and foreign militaries, as well as original equipment manufacturers. Innovative Solutions and Support, Inc. was incorporated in 1988 and is based in Exton, Pennsylvania.