Spirit Aerosystems Holdings (NYSE: SPR) and LMI Aerospace (NASDAQ:LMIA) are both aerospace companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitabiliy, valuation and institutional ownership.

Profitability

This table compares Spirit Aerosystems Holdings and LMI Aerospace’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spirit Aerosystems Holdings 6.46% 28.51% 10.05%
LMI Aerospace -11.62% -5.84% -1.29%

Volatility & Risk

Spirit Aerosystems Holdings has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, LMI Aerospace has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Earnings & Valuation

This table compares Spirit Aerosystems Holdings and LMI Aerospace’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Spirit Aerosystems Holdings $6.81 billion 1.07 $915.60 million $3.57 16.96
LMI Aerospace N/A N/A N/A ($3.04) -4.60

Spirit Aerosystems Holdings has higher revenue and earnings than LMI Aerospace. LMI Aerospace is trading at a lower price-to-earnings ratio than Spirit Aerosystems Holdings, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

99.5% of Spirit Aerosystems Holdings shares are owned by institutional investors. Comparatively, 46.9% of LMI Aerospace shares are owned by institutional investors. 0.3% of Spirit Aerosystems Holdings shares are owned by insiders. Comparatively, 17.5% of LMI Aerospace shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Spirit Aerosystems Holdings and LMI Aerospace, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirit Aerosystems Holdings 2 7 5 0 2.21
LMI Aerospace 0 1 0 0 2.00

Spirit Aerosystems Holdings currently has a consensus price target of $63.82, suggesting a potential upside of 5.38%. Given Spirit Aerosystems Holdings’ stronger consensus rating and higher possible upside, research analysts clearly believe Spirit Aerosystems Holdings is more favorable than LMI Aerospace.

Dividends

Spirit Aerosystems Holdings pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. LMI Aerospace does not pay a dividend. Spirit Aerosystems Holdings pays out 11.2% of its earnings in the form of a dividend.

Summary

Spirit Aerosystems Holdings beats LMI Aerospace on 11 of the 13 factors compared between the two stocks.

About Spirit Aerosystems Holdings

Spirit AeroSystems Holdings, Inc. is a non-original equipment manufacturer (OEM), aircraft parts designer and manufacturer of commercial aero-structures. The Company is also a supplier of aero-structures. The Company operates through three segments: Fuselage Systems, Propulsion Systems and Wing Systems. The Fuselage Systems segment includes the development, production and marketing of forward, mid and rear fuselage sections and systems. The Propulsion Systems segment includes the development, production and marketing of struts/pylons, nacelles (including thrust reversers) and related engine structural components. The Wing Systems segment includes the development, production and marketing of wings and wing components (including flight control surfaces), and other miscellaneous structural parts. The Company’s maintenance, repair and overhaul (MRO) services include repair stations that provide complete on-site repair and overhaul.

About LMI Aerospace

LMI Aerospace, Inc. is a supplier of structural assemblies, kits and components, and design engineering services to the aerospace and defense markets. The Company operates in two business segments consisting of its Aerostructures segment and its Engineering Services segment. Its Aerostructures segment fabricates, machines, finishes, integrates, assembles and kits machined and formed close tolerance aluminum, specialty alloy and composite components and higher level assemblies for use by the aerospace and defense industries. Its Engineering Services segment provides a range of design, engineering and program management services, supporting aircraft product lifecycles from conceptual design, analysis and certification through production support, fleet support and service life extensions through an engineering solution to original equipment manufacturers (OEMs) and Tier 1 aerospace suppliers, and airline operators.

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