Analyzing Virgin Galactic (NYSE:SPCE) & Vertical Aerospace (NYSE:EVTL)

Virgin Galactic (NYSE:SPCE) and Vertical Aerospace (NYSE:EVTL) are both small-cap aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

46.6% of Virgin Galactic shares are owned by institutional investors. Comparatively, 81.2% of Vertical Aerospace shares are owned by institutional investors. 0.4% of Virgin Galactic shares are owned by insiders. Comparatively, 74.8% of Vertical Aerospace shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Virgin Galactic and Vertical Aerospace”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virgin Galactic	$7.04 million	25.19	-$346.74 million	($7.47)	-0.32
Vertical Aerospace	N/A	N/A	-$998.35 million	($48.92)	-0.08

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Virgin Galactic and Vertical Aerospace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virgin Galactic	2	3	1	0	1.83
Vertical Aerospace	2	0	6	0	2.50

Virgin Galactic presently has a consensus target price of $4.20, suggesting a potential upside of 73.20%. Vertical Aerospace has a consensus target price of $11.80, suggesting a potential upside of 190.28%. Given Vertical Aerospace’s stronger consensus rating and higher possible upside, analysts clearly believe Vertical Aerospace is more favorable than Virgin Galactic.

Profitability

This table compares Virgin Galactic and Vertical Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virgin Galactic	-17,615.71%	-108.00%	-32.35%
Vertical Aerospace	N/A	N/A	-489.91%

Risk & Volatility

Virgin Galactic has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500. Comparatively, Vertical Aerospace has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Summary

Vertical Aerospace beats Virgin Galactic on 8 of the 13 factors compared between the two stocks.

About Virgin Galactic

Virgin Galactic Holdings, Inc., an aerospace and space travel company, focuses on the development, manufacture, and operation of spaceships and related technologies. The company engages in the design and development, manufacturing, ground and flight testing, spaceflight operation, and post-flight maintenance of spaceflight systems for private individuals, researchers, and government agencies. Virgin Galactic Holdings, Inc. is headquartered in Tustin, California.

About Vertical Aerospace

Vertical Aerospace Ltd., an aerospace and technology company, engages in designing, manufacturing, and selling zero operating emission electric vertical takeoff and landing (eVTOL) aircraft for use in the advanced air mobility in the United Kingdom. It offers VX4, an eVTOL aircraft. Vertical Aerospace Ltd. was founded in 2016 and is headquartered in Bristol, the United Kingdom.