Head to Head Review: Jet.AI (NASDAQ:JTAI) versus Federal Signal (NYSE:FSS)

Federal Signal (NYSE:FSS) and Jet.AI (NASDAQ:JTAI) are both multi-sector conglomerates companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Federal Signal and Jet.AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Signal	0	4	2	0	2.33
Jet.AI	1	0	1	0	2.00

Federal Signal currently has a consensus target price of $123.00, indicating a potential upside of 9.87%. Jet.AI has a consensus target price of $11.00, indicating a potential upside of 3,566.67%. Given Jet.AI’s higher possible upside, analysts clearly believe Jet.AI is more favorable than Federal Signal.

Earnings and Valuation

This table compares Federal Signal and Jet.AI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Signal	$1.86 billion	3.66	$216.30 million	$3.83	29.23
Jet.AI	$14.02 million	0.08	-$12.73 million	($3.36)	-0.09

Federal Signal has higher revenue and earnings than Jet.AI. Jet.AI is trading at a lower price-to-earnings ratio than Federal Signal, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Federal Signal has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Jet.AI has a beta of -0.15, suggesting that its share price is 115% less volatile than the S&P 500.

Institutional and Insider Ownership

92.7% of Federal Signal shares are held by institutional investors. Comparatively, 5.5% of Jet.AI shares are held by institutional investors. 3.3% of Federal Signal shares are held by company insiders. Comparatively, 1.0% of Jet.AI shares are held by company 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 Federal Signal and Jet.AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Signal	11.47%	19.50%	12.93%
Jet.AI	-103.18%	-107.36%	-77.17%

Summary

Federal Signal beats Jet.AI on 13 of the 14 factors compared between the two stocks.

About Federal Signal

Federal Signal Corp. engages in the design and manufacture of products and integrated solutions for municipal, governmental, industrial, and commercial customers. It operates through the Environmental Solutions Group and Safety and Security Systems Group segments. The Environment Solutions Group segment is involved in the manufacture and supply of street sweeper vehicles, sewer cleaners, vacuum loader trucks, hydro-excavation trucks, and water blasting equipment. The Safety and Security Systems Group segment offers comprehensive systems and products that law enforcement, fire rescue, emergency medical services, campuses, military facilities, and industrial sites use to protect people and property. The company was founded in 1901 and is headquartered in Oak Brook, IL.

About Jet.AI

Jet.AI Inc. primarily engages in the development and operation of private aviation platforms. The company operates CharterGPT, a booking platform that functions as a prospecting and quoting platform to arrange private jet travel with its aircrafts and third-party carriers. It also provides Reroute AI software that recycles aircraft waiting to return to base into prospective new charter bookings to destinations within specific distances; and DynoFlight, a software application programming interface (API), which enables aircraft operators to track and estimate emissions, and purchase carbon offset credits. In addition, the company offers Flight Club API, an aviation software, that enables FAA Part 135 operators to function simultaneously under FAA Part 380, which permits sale of private jet service by the seat instead of by whole aircraft. Further, it offers aircraft charter, management, and brokerage services. The company was founded in 2018 and is headquartered in Las Vegas, Nevada.