Head to Head Contrast: EVE (NYSE:EVEX) vs. Redwire (NYSE:RDW)

EVE (NYSE:EVEX) and Redwire (NYSE:RDW) are both small-cap aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for EVE and Redwire, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVE	1	2	4	0	2.43
Redwire	2	2	7	1	2.58

EVE currently has a consensus target price of $6.42, suggesting a potential upside of 99.63%. Redwire has a consensus target price of $13.89, suggesting a potential upside of 51.87%. Given EVE’s higher possible upside, equities research analysts clearly believe EVE is more favorable than Redwire.

Profitability

This table compares EVE and Redwire’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EVE	N/A	-258.98%	-60.32%
Redwire	-80.90%	-12.05%	-7.92%

Volatility & Risk

EVE has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Redwire has a beta of 2.41, suggesting that its stock price is 141% more volatile than the S&P 500.

Earnings & Valuation

This table compares EVE and Redwire”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVE	N/A	N/A	-$224.26 million	($0.69)	-4.66
Redwire	$335.38 million	5.23	-$226.55 million	($2.37)	-3.86

EVE has higher earnings, but lower revenue than Redwire. EVE is trading at a lower price-to-earnings ratio than Redwire, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

1.3% of EVE shares are owned by institutional investors. Comparatively, 8.1% of Redwire shares are owned by institutional investors. 0.2% of EVE shares are owned by insiders. Comparatively, 0.8% of Redwire shares are owned by 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.

Summary

Redwire beats EVE on 10 of the 14 factors compared between the two stocks.

About EVE

Eve Holding, Inc. is a special purpose acquisition company focused on the aviation sector. The company was founded on 7th August, 2020 and is headquartered in Melbourne, FL.

About Redwire

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft. It offers software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company microgravity payloads, radio frequency systems, antennas, star trackers, platforms, and in-space manufacturing and biotech facilities. Redwire Corporation is headquartered in Jacksonville, Florida.