Head to Head Analysis: Red Cat (NASDAQ:RCAT) vs. V2X (NYSE:VVX)

V2X (NYSE:VVX) and Red Cat (NASDAQ:RCAT) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

V2X has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, Red Cat has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Valuation and Earnings

This table compares V2X and Red Cat”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
V2X	$4.48 billion	0.52	$77.88 million	$2.90	25.60
Red Cat	$40.73 million	25.22	-$72.07 million	($0.81)	-10.33

V2X has higher revenue and earnings than Red Cat. Red Cat is trading at a lower price-to-earnings ratio than V2X, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

95.2% of V2X shares are owned by institutional investors. Comparatively, 38.0% of Red Cat shares are owned by institutional investors. 1.0% of V2X shares are owned by insiders. Comparatively, 12.5% of Red Cat shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares V2X and Red Cat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
V2X	1.88%	17.52%	6.00%
Red Cat	-136.26%	-32.25%	-28.48%

Analyst Ratings

This is a breakdown of recent recommendations for V2X and Red Cat, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
V2X	1	7	6	0	2.36
Red Cat	1	1	5	2	2.89

V2X currently has a consensus target price of $86.90, indicating a potential upside of 17.05%. Red Cat has a consensus target price of $18.00, indicating a potential upside of 115.05%. Given Red Cat’s stronger consensus rating and higher possible upside, analysts plainly believe Red Cat is more favorable than V2X.

Summary

V2X beats Red Cat on 9 of the 15 factors compared between the two stocks.

About V2X

V2X, Inc. provides critical mission solutions and support services to defense clients worldwide. It offers a suite of integrated solutions across the operations and logistics, aerospace, training, and technology markets to national security, defense, civilian, and international clients. The company was incorporated in 2014 and is headquartered in Mclean, Virginia.

About Red Cat

Red Cat Holdings, Inc. engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment. Red Cat Holdings, Inc. is based in San Juan, Puerto Rico.