Financial Analysis: Vertical Aerospace (NYSE:EVTL) & Redwire (NYSE:RDW)

Vertical Aerospace (NYSE:EVTL) and Redwire (NYSE:RDW) are both aerospace companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Vertical Aerospace and Redwire”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertical Aerospace	N/A	N/A	-$998.35 million	($48.92)	-0.10
Redwire	$304.10 million	7.17	-$114.32 million	($3.17)	-4.17

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

Risk & Volatility

Vertical Aerospace has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Redwire has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Vertical Aerospace and Redwire, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertical Aerospace	1	0	6	0	2.71
Redwire	2	3	6	0	2.36

Vertical Aerospace presently has a consensus target price of $11.80, indicating a potential upside of 132.51%. Redwire has a consensus target price of $13.75, indicating a potential upside of 4.13%. Given Vertical Aerospace’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Vertical Aerospace is more favorable than Redwire.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vertical Aerospace	N/A	N/A	-489.91%
Redwire	-70.32%	-16.24%	-7.20%

Institutional & Insider Ownership

81.2% of Vertical Aerospace shares are held by institutional investors. Comparatively, 8.1% of Redwire shares are held by institutional investors. 74.8% of Vertical Aerospace shares are held by company insiders. Comparatively, 2.6% of Redwire shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Vertical Aerospace beats Redwire on 7 of the 12 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. Vertical Aerospace Ltd. was founded in 2016 and is headquartered in Bristol, the United Kingdom.

About Redwire

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft. It offers software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company microgravity payloads, radio frequency systems, antennas, star trackers, platforms, and in-space manufacturing and biotech facilities. Redwire Corporation is headquartered in Jacksonville, Florida.