Innovative Solutions and Support (NASDAQ: ISSC) has emerged as a more favorable investment compared to Astronics (NASDAQ: ATRO), according to recent analysis. The assessment evaluates both companies on factors including institutional ownership, analyst recommendations, profitability, and volatility.
Analyst Ratings and Market Potential
Current analyst ratings indicate that Innovative Solutions and Support holds a consensus price target of $16.25, suggesting a potential upside of 45.61%. In contrast, Astronics has a lower consensus price target of $61.00, reflecting a more modest upside of 12.13%. This data, reported by MarketBeat, implies that analysts view Innovative Solutions and Support as a more attractive option for investors.
Financial Performance and Valuation
In terms of financial metrics, Innovative Solutions and Support demonstrates higher earnings despite having lower revenue than Astronics. Astronics trades at a lower price-to-earnings (P/E) ratio, indicating it is currently regarded as the more affordable stock. However, the higher earnings of Innovative Solutions and Support may attract investors looking for growth potential.
Profitability metrics further emphasize the distinction between the two companies. Innovative Solutions and Support shows more favorable net margins, return on equity, and return on assets compared to Astronics, reinforcing its stronger financial health.
The institutional ownership levels reveal contrasting investor confidence. Approximately 28.5% of Innovative Solutions and Support shares are held by institutional investors, while 56.7% of Astronics shares are under institutional control. Additionally, 4.4% of Innovative Solutions and Support shares are owned by insiders, compared to 9.4% for Astronics. High institutional ownership often indicates that large investors believe a company has significant growth prospects.
Volatility and Risk Assessment
When examining stock volatility, Innovative Solutions and Support has a beta of 0.77, suggesting its share price is 23% less volatile than the S&P 500. Conversely, Astronics exhibits a beta of 1.12, indicating it is 12% more volatile than the broader market. This difference in volatility may appeal to risk-averse investors considering long-term stability.
In summary, Innovative Solutions and Support surpasses Astronics in 9 out of 15 evaluation factors, highlighting its potential as a more promising investment across various metrics.
About Innovative Solutions and Support
Founded in 1988 and headquartered in Exton, Pennsylvania, Innovative Solutions and Support, Inc. specializes in designing and manufacturing systems for flight guidance, autothrottles, and cockpit display systems. The company provides advanced display systems that enhance the functionality of both commercial and military aircraft. Their offerings include integrated backup navigation instruments and air data computers, serving a diverse range of clients, including commercial carriers and government agencies.
About Astronics
Established in 1968 and based in East Aurora, New York, Astronics Corporation designs and manufactures products for the aerospace and defense sectors. The company operates through two main segments: Aerospace and Test Systems. The Aerospace segment focuses on products such as lighting systems and avionics, while the Test Systems segment provides automated test solutions for both military and commercial applications.
As investors consider their options, the analysis suggests that Innovative Solutions and Support holds a competitive edge over Astronics, particularly in terms of market potential and financial performance.
