Environmental Tectonics (OTCMKTS:ETCC) vs. AAR (NYSE:AIR) Head to Head Comparison

Environmental Tectonics (OTCMKTS:ETCC) and AAR (NYSE:AIR) are both aerospace companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Insider & Institutional Ownership

90.7% of AAR shares are held by institutional investors. 74.8% of Environmental Tectonics shares are held by insiders. Comparatively, 3.6% of AAR shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Environmental Tectonics has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, AAR has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Environmental Tectonics and AAR, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Environmental Tectonics	0	0	0	0	0.00
AAR	0	2	4	1	2.86

AAR has a consensus target price of $110.80, suggesting a potential upside of 0.91%. Given AAR’s stronger consensus rating and higher possible upside, analysts clearly believe AAR is more favorable than Environmental Tectonics.

Valuation & Earnings

This table compares Environmental Tectonics and AAR”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Environmental Tectonics	$62.94 million	0.15	$13.06 million	$0.60	1.59
AAR	$2.78 billion	1.56	$12.50 million	$2.55	43.06

Environmental Tectonics has higher earnings, but lower revenue than AAR. Environmental Tectonics is trading at a lower price-to-earnings ratio than AAR, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Environmental Tectonics and AAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Environmental Tectonics	15.91%	281.64%	11.13%
AAR	3.17%	12.40%	5.43%

Summary

AAR beats Environmental Tectonics on 10 of the 15 factors compared between the two stocks.

About Environmental Tectonics

Environmental Tectonics Corporation, together with its subsidiaries, operates as an engineered solutions company in the United States and internationally. It operates in two segments, Aerospace Solutions (Aerospace) and Commercial/Industrial Systems (CIS). The Aerospace segment engages in the design, manufacture, and sale of aircrew training systems to commercial, governmental, and military defense agencies; training devices, including altitude and multiplace chambers to governmental and military defense agencies, and civil aviation organizations; and advanced disaster management simulators to governmental organizations, original equipment manufacturers, fire and emergency training schools, universities, and airports, as well as provides integrated logistics support services. The CIS segment is involved in the design, manufacture, and sale of steam and gas sterilizers to medical device and pharmaceutical manufacturers, as well as universities; and environmental testing and simulation systems primarily to commercial automotive, as well as to heating, ventilation, and air conditioning manufacturers. This segment also provides parts, as well as upgrade, maintenance, and repair services. The company markets its products through independent sales representatives and distributors. Environmental Tectonics Corporation was incorporated in 1969 and is headquartered in Southampton, Pennsylvania.

About AAR

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes. This segment also develops specific aircraft components and parts; and designs proprietary designated engineering representative repairs. The Integrated Solutions segment engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services; and flight hour component inventory and repair services. In addition, the segment provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating MRO workflows. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets; and containers and shelters for military and humanitarian tactical deployment activities, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters, as well as engages in provision of engineering, design, and system integration services for specialized command and control systems. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.