Analyzing Loar (NYSE:LOAR) & Howmet Aerospace (NYSE:HWM)

Howmet Aerospace (NYSE:HWM) and Loar (NYSE:LOAR) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares Howmet Aerospace and Loar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Howmet Aerospace	$8.25 billion	9.76	$1.51 billion	$4.64	43.38
Loar	$496.28 million	12.00	$72.15 million	$0.72	88.25

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

Institutional & Insider Ownership

90.5% of Howmet Aerospace shares are owned by institutional investors. 0.9% of Howmet Aerospace shares are owned by insiders. Comparatively, 20.1% of Loar 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.

Profitability

This table compares Howmet Aerospace and Loar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Howmet Aerospace	20.52%	33.91%	15.11%
Loar	11.60%	9.37%	5.39%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Howmet Aerospace and Loar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Howmet Aerospace	0	4	18	1	2.87
Loar	0	3	4	0	2.57

Howmet Aerospace currently has a consensus price target of $310.29, indicating a potential upside of 54.15%. Loar has a consensus price target of $86.00, indicating a potential upside of 35.35%. Given Howmet Aerospace’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Howmet Aerospace is more favorable than Loar.

Volatility & Risk

Howmet Aerospace has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Loar has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Summary

Howmet Aerospace beats Loar on 12 of the 15 factors compared between the two stocks.

About Howmet Aerospace

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally. It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The Engine Products segment offers airfoils and seamless rolled rings primarily for aircraft engines and industrial gas turbines; and rotating and structural parts. The Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners; and latches, bearings, fluid fittings, and installation tools. The Engineered Structures segment provides titanium ingots and mill products, aluminum and nickel forgings, and machined components and assemblies for aerospace and defense applications; and titanium forgings, extrusions, and forming and machining services for airframe, wing, aero-engine, and landing gear components. The Forged Wheels segment offers forged aluminum wheels and related products for heavy-duty trucks and commercial transportation markets. The company was formerly known as Arconic Inc. Howmet Aerospace Inc. was founded in 1888 and is based in Pittsburgh, Pennsylvania.

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.