Virgin Galactic (NYSE:SPCE) vs. Vertical Aerospace (NYSE:EVTL) Financial Analysis

Vertical Aerospace (NYSE:EVTL) and Virgin Galactic (NYSE:SPCE) are both small-cap aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

81.2% of Vertical Aerospace shares are owned by institutional investors. Comparatively, 46.6% of Virgin Galactic shares are owned by institutional investors. 74.8% of Vertical Aerospace shares are owned by insiders. Comparatively, 0.3% of Virgin Galactic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Vertical Aerospace and Virgin Galactic’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%
Virgin Galactic	-17,615.71%	-108.00%	-32.35%

Analyst Ratings

This is a summary of current recommendations and price targets for Vertical Aerospace and Virgin Galactic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertical Aerospace	2	0	6	0	2.50
Virgin Galactic	2	3	1	0	1.83

Vertical Aerospace presently has a consensus target price of $11.80, suggesting a potential upside of 173.15%. Virgin Galactic has a consensus target price of $4.20, suggesting a potential upside of 58.49%. Given Vertical Aerospace’s stronger consensus rating and higher probable upside, analysts plainly believe Vertical Aerospace is more favorable than Virgin Galactic.

Volatility and Risk

Vertical Aerospace has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Virgin Galactic has a beta of 2.21, suggesting that its share price is 121% more volatile than the S&P 500.

Earnings and Valuation

This table compares Vertical Aerospace and Virgin Galactic”s gross 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)	-0.09
Virgin Galactic	$7.04 million	27.53	-$346.74 million	($7.47)	-0.35

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

Summary

Vertical Aerospace beats Virgin Galactic on 8 of the 13 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 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.