Head-To-Head Comparison: Innovative Solutions and Support (NASDAQ:ISSC) and Alabama Aircraft Industries (OTCMKTS:AAIIQ)

Innovative Solutions and Support (NASDAQ:ISSC) and Alabama Aircraft Industries (OTCMKTS:AAIIQ) are both aerospace companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional and Insider Ownership

28.5% of Innovative Solutions and Support shares are owned by institutional investors. 4.4% of Innovative Solutions and Support shares are owned by company insiders. Comparatively, 38.0% of Alabama Aircraft Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Innovative Solutions and Support and Alabama Aircraft Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Solutions and Support	0	1	1	2	3.25
Alabama Aircraft Industries	0	0	0	0	0.00

Innovative Solutions and Support currently has a consensus target price of $16.50, indicating a potential upside of 84.56%. Given Innovative Solutions and Support’s stronger consensus rating and higher possible upside, research analysts plainly believe Innovative Solutions and Support is more favorable than Alabama Aircraft Industries.

Earnings and Valuation

This table compares Innovative Solutions and Support and Alabama Aircraft Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Solutions and Support	$77.43 million	2.04	$7.00 million	$0.66	13.55
Alabama Aircraft Industries	N/A	N/A	N/A	N/A	N/A

Innovative Solutions and Support has higher revenue and earnings than Alabama Aircraft Industries.

Profitability

This table compares Innovative Solutions and Support and Alabama Aircraft Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovative Solutions and Support	15.10%	23.86%	14.15%
Alabama Aircraft Industries	N/A	N/A	N/A

Summary

Innovative Solutions and Support beats Alabama Aircraft Industries on 9 of the 10 factors compared between the two stocks.

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.

About Alabama Aircraft Industries

Alabama Aircraft Industries, Inc provides aircraft maintenance and modification services to the United States government, foreign governments, and military customers. Its services include maintenance and modification of military transport, tanker, and petrol aircraft airframes; and aircraft maintenance and modification services, such as complete airframe maintenance and repair, and custom air frame design and modification. The company’s services also comprise scheduled and unscheduled maintenance; interior refurbishment and reconfiguration; lavatory, galley, airstair, and auxiliary fuel tank installations; aging aircraft inspection; structural and accident damage repair; manufacturing and parts fabrication; composite repair; service bulletin and AD compliance; component repair and overhaul; EPA approved stripping and painting; CPCP; non-destructive testing; avionics upgrades and installation; and FAA repair station RJ1R454K. Its principal services performed under military contracts are programmed depot maintenance, aircraft modifications, aircraft stripping and painting, rewiring, parts fabrication, engineering support services, system integration of component upgrades, and modification of fixed wing aircrafts. In addition, the company offers airframe corrosion prevention and control, rewiring, and component overhauls, as well as structural, avionics, and other systems modification services. It provides its services directly as a prime contractor or indirectly as a sub- contractor. The company was formerly known as Pemco Aviation Group, Inc. and changed its name to Alabama Aircraft Industries Inc. in September 2007. Alabama Aircraft Industries, Inc was founded in 1983 and is based in Birmingham, Alabama. On Nov 3, 2011, the voluntary petition of Alabama Aircraft Industries, Inc., along with its affiliates, for reorganization under Ch 11 was converted to Ch 7. It had filed for Chapter 11 bankruptcy on Feb 15, 2011.