Comparing L3Harris Technologies (NYSE:LHX) and Virgin Galactic (NYSE:SPCE)

Virgin Galactic (NYSE:SPCE) and L3Harris Technologies (NYSE:LHX) are both aerospace companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

This table compares Virgin Galactic and L3Harris Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virgin Galactic	-17,615.71%	-108.00%	-32.35%
L3Harris Technologies	8.09%	11.08%	5.19%

Volatility and Risk

Virgin Galactic has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, L3Harris Technologies has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Virgin Galactic and L3Harris Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virgin Galactic	2	3	1	0	1.83
L3Harris Technologies	0	8	11	0	2.58

Virgin Galactic currently has a consensus target price of $4.33, indicating a potential upside of 33.08%. L3Harris Technologies has a consensus target price of $295.50, indicating a potential upside of 3.02%. Given Virgin Galactic’s higher possible upside, equities research analysts clearly believe Virgin Galactic is more favorable than L3Harris Technologies.

Earnings & Valuation

This table compares Virgin Galactic and L3Harris Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virgin Galactic	$1.66 million	112.69	-$346.74 million	($7.47)	-0.44
L3Harris Technologies	$21.74 billion	2.47	$1.50 billion	$9.31	30.81

L3Harris Technologies has higher revenue and earnings than Virgin Galactic. Virgin Galactic is trading at a lower price-to-earnings ratio than L3Harris Technologies, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

46.6% of Virgin Galactic shares are held by institutional investors. Comparatively, 84.8% of L3Harris Technologies shares are held by institutional investors. 0.3% of Virgin Galactic shares are held by insiders. Comparatively, 0.7% of L3Harris Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

L3Harris Technologies beats Virgin Galactic on 11 of the 14 factors compared between the two stocks.

About Virgin Galactic

Virgin Galactic Holdings, Inc., an aerospace and space travel company, focuses on the development, manufacture, and operation of spaceships and related technologies. The company engages in the design and development, manufacturing, ground and flight testing, spaceflight operation, and post-flight maintenance of spaceflight systems for private individuals, researchers, and government agencies. Virgin Galactic Holdings, Inc. is headquartered in Tustin, California.

About L3Harris Technologies

L3Harris Technologies, Inc. provides mission-critical solutions for government and commercial customers worldwide. The company's Integrated Mission Systems segment provides intelligence, surveillance, and reconnaissance (ISR) systems, passive sensing and targeting, electronic attack, autonomy, power and communications, and networks and sensors, as well as advanced combat systems for air, land, and sea sectors. Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber; mission avionics; electronic warfare systems; and mission networks systems for air traffic management operations. The company's Communication Systems segment provides broadband communications; tactical radios, software, satellite terminals, and end-to-end battlefield systems for the U.S. Department of Defense, international, federal, and state agency customers; integrated vision solutions, including helmet-mounted integrated night vision goggles with leading-edge image intensifier tubes and weapon-mounted sights, aiming lasers, and range finders; and public safety radios, and system applications and equipment. Its Aerojet Rocketdyne segment provides propulsion technologies and armament systems for strategic defense, missile defense, hypersonic, and tactical systems; and space propulsion and power systems for national security, and space and exploration missions. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is based in Melbourne, Florida.