New Horizon Aircraft (NASDAQ:HOVR) and AeroVironment (NASDAQ:AVAV) Critical Review

New Horizon Aircraft (NASDAQ:HOVR) and AeroVironment (NASDAQ:AVAV) are both aerospace companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Insider and Institutional Ownership

66.0% of New Horizon Aircraft shares are held by institutional investors. Comparatively, 86.4% of AeroVironment shares are held by institutional investors. 1.4% of AeroVironment 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.

Earnings & Valuation

This table compares New Horizon Aircraft and AeroVironment’s gross 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
AeroVironment	$540.54 million	10.40	-$176.21 million	($4.31)	-46.35

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
New Horizon Aircraft	N/A	-29.17%	3.03%
AeroVironment	-15.14%	13.93%	10.46%

Analyst Ratings

This is a breakdown of current recommendations for New Horizon Aircraft and AeroVironment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Horizon Aircraft	0	0	0	0	N/A
AeroVironment	0	2	4	0	2.67

AeroVironment has a consensus price target of $140.20, suggesting a potential downside of 29.82%. Given AeroVironment’s higher possible upside, analysts clearly believe AeroVironment is more favorable than New Horizon Aircraft.

Summary

AeroVironment beats New Horizon Aircraft on 7 of the 9 factors compared between the two stocks.

About New Horizon Aircraft

New Horizon Aircraft Ltd., an aerospace original equipment manufacturer company, focuses on designing and developing hybrid electric vertical takeoff and landing (eVTOL) aircraft for the regional air mobility market. 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 AeroVironment

AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments. The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, the company offers small UAS products, including training, spare parts, product repair, product replacement, and the customer contracted operation. Further, it develops high-altitude pseudo-satellite UAS systems. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.