Analyzing New Horizon Aircraft (NASDAQ:HOVR) and Vertical Aerospace (NYSE:EVTL)

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

Institutional & Insider Ownership

81.2% of Vertical Aerospace shares are owned by institutional investors. Comparatively, 66.0% of New Horizon Aircraft shares are owned by institutional investors. 74.8% of Vertical Aerospace shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

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

Valuation & Earnings

This table compares Vertical Aerospace and New Horizon Aircraft’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertical Aerospace	$180,000.00	921.87	-$74.57 million	N/A	N/A
New Horizon Aircraft	N/A	N/A	$8.61 million	N/A	N/A

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Vertical Aerospace and New Horizon Aircraft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertical Aerospace	0	0	1	0	3.00
New Horizon Aircraft	0	0	0	0	N/A

Vertical Aerospace currently has a consensus target price of $1.50, indicating a potential upside of 100.00%. Given Vertical Aerospace’s higher probable upside, analysts plainly believe Vertical Aerospace is more favorable than New Horizon Aircraft.

Summary

Vertical Aerospace beats New Horizon Aircraft on 6 of the 8 factors compared between the two stocks.

About Vertical Aerospace

Vertical Aerospace Ltd., an aerospace and technology company, engages in designing, manufacturing, and selling zero operating emission electric vertical takeoff and landing (eVTOL) aircraft for use in the advanced air mobility in the United Kingdom. It offers VX4, an eVTOL aircraft. The company was founded in 2016 and is headquartered in Bristol, the United Kingdom.

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.