Head-To-Head Comparison: Sypris Solutions (NASDAQ:SYPR) & Loar (NYSE:LOAR)

Loar (NYSE:LOAR) and Sypris Solutions (NASDAQ:SYPR) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Earnings and Valuation

This table compares Loar and Sypris Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loar	$496.28 million	11.62	$72.15 million	$0.72	85.49
Sypris Solutions	$115.11 million	0.33	-$6.34 million	($0.47)	-3.53

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

Insider & Institutional Ownership

44.7% of Sypris Solutions shares are owned by institutional investors. 20.1% of Loar shares are owned by company insiders. Comparatively, 47.9% of Sypris Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Loar and Sypris Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loar	0	3	4	0	2.57
Sypris Solutions	1	0	0	0	1.00

Loar presently has a consensus target price of $86.00, indicating a potential upside of 39.72%. Given Loar’s stronger consensus rating and higher possible upside, analysts clearly believe Loar is more favorable than Sypris Solutions.

Profitability

This table compares Loar and Sypris Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loar	11.60%	9.37%	5.39%
Sypris Solutions	-9.23%	-67.14%	-9.87%

Volatility & Risk

Loar has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Sypris Solutions has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Summary

Loar beats Sypris Solutions on 11 of the 14 factors compared between the two stocks.

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.

About Sypris Solutions

Sypris Solutions, Inc. engages in the provision of truck components, oil and gas pipeline components, and aerospace and defense electronics. It operates through Sypris Technologies and Sypris Electronics segments. The Sypris Technologies segment is involved in selling of forged, machined, welded, and heat-treated steel components primarily for the heavy commercial vehicle and high-pressure energy pipeline applications. The Sypris Electronics segment includes circuit card and full box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability and design to specification work. The company was founded in 1997 and is headquartered in Louisville, KY.