Loar (NYSE:LOAR – Get Free Report) and EHang (NASDAQ:EH – Get Free Report) are both aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
Profitability
This table compares Loar and EHang’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Loar | N/A | N/A | N/A |
EHang | -110.21% | -84.09% | -35.65% |
Insider and Institutional Ownership
94.0% of EHang shares are held by institutional investors. 39.6% of EHang shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Loar | N/A | N/A | N/A | N/A | N/A |
EHang | $16.54 million | 64.05 | -$42.49 million | ($0.58) | -28.76 |
Loar has higher earnings, but lower revenue than EHang.
Analyst Ratings
This is a summary of recent recommendations for Loar and EHang, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Loar | 0 | 1 | 3 | 0 | 2.75 |
EHang | 0 | 0 | 3 | 0 | 3.00 |
Loar presently has a consensus target price of $77.00, suggesting a potential downside of 11.49%. EHang has a consensus target price of $24.75, suggesting a potential upside of 48.38%. Given EHang’s stronger consensus rating and higher possible upside, analysts clearly believe EHang is more favorable than Loar.
Summary
EHang beats Loar on 5 of the 8 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 EHang
EHang Holdings Limited operates as an autonomous aerial vehicle (AAV) technology platform company in the People's Republic of China, East Asia, West Asia, Europe, and internationally. It designs, develops, manufactures, sells, and operates AAVs, as well as their supporting systems and infrastructure for various industries and applications, including passenger transportation, logistics, smart city management, and aerial media solutions. The company was incorporated in 2014 and is headquartered in Guangzhou, the People's Republic of China.
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