Critical Review: Lilium (NASDAQ:LILM) and New Horizon Aircraft (NASDAQ:HOVR)

New Horizon Aircraft (NASDAQ:HOVR) and Lilium (NASDAQ:LILM) are both small-cap aerospace companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for New Horizon Aircraft and Lilium, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Horizon Aircraft	0	0	0	0	N/A
Lilium	0	1	3	0	2.75

Lilium has a consensus price target of $2.53, suggesting a potential upside of 183.01%. Given Lilium’s higher probable upside, analysts plainly believe Lilium is more favorable than New Horizon Aircraft.

Earnings and Valuation

This table compares New Horizon Aircraft and Lilium’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Horizon Aircraft	N/A	N/A	$8.61 million	N/A	N/A
Lilium	$60,000.00	7,830.24	-$421.14 million	N/A	N/A

New Horizon Aircraft has higher earnings, but lower revenue than Lilium.

Insider & Institutional Ownership

66.0% of New Horizon Aircraft shares are owned by institutional investors. Comparatively, 8.3% of Lilium shares are owned by institutional investors. 33.1% of Lilium 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.

Profitability

This table compares New Horizon Aircraft and Lilium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New Horizon Aircraft	N/A	-137.31%	7.13%
Lilium	N/A	N/A	N/A

Summary

Lilium beats New Horizon Aircraft on 5 of the 8 factors compared between the two stocks.

About New Horizon Aircraft

New Horizon Aircraft Ltd., an aerospace engineering company, focuses on designing and developing the hybrid electric vertical takeoff and landing (eVTOL) aircraft for the regional air mobility market primarily in the United States. It is developing Cavorite X7, a hybrid electric 7-seat aircraft that can take off and land vertically. The company was founded in 2013 and is headquartered in Lindsay, Canada.

About Lilium

Lilium N.V., a transportation company, engages in the research and development of electric vertical takeoff and landing aircrafts and jet for use in high-speed air transport system for people and goods. It also provides aircraft manufacturer services, including training, maintenance operations, material and battery management, global distribution, flight operations support, ground service equipment, and digital solutions. Lilium N.V. was incorporated in 2015 and is headquartered in Wessling, Germany.