Financial Survey: Innovative Solutions and Support (NASDAQ:ISSC) & Astronics (OTCMKTS:ATROB)

Astronics (OTCMKTS:ATROB) and Innovative Solutions and Support (NASDAQ:ISSC) are both aerospace companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Volatility & Risk

Astronics has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Innovative Solutions and Support has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares Astronics and Innovative Solutions and Support’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astronics	3.41%	39.95%	11.66%
Innovative Solutions and Support	21.02%	30.44%	18.78%

Institutional & Insider Ownership

28.5% of Innovative Solutions and Support shares are held by institutional investors. 16.0% of Astronics shares are held by company insiders. Comparatively, 5.9% of Innovative Solutions and Support shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Astronics and Innovative Solutions and Support”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astronics	$862.13 million	2.69	$29.36 million	$0.77	84.42
Innovative Solutions and Support	$84.30 million	4.53	$15.63 million	$1.05	20.48

Astronics has higher revenue and earnings than Innovative Solutions and Support. Innovative Solutions and Support is trading at a lower price-to-earnings ratio than Astronics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Astronics and Innovative Solutions and Support, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astronics	0	0	0	0	0.00
Innovative Solutions and Support	0	0	2	4	3.67

Innovative Solutions and Support has a consensus price target of $16.25, suggesting a potential downside of 24.42%. Given Innovative Solutions and Support’s stronger consensus rating and higher probable upside, analysts plainly believe Innovative Solutions and Support is more favorable than Astronics.

Summary

Innovative Solutions and Support beats Astronics on 9 of the 15 factors compared between the two stocks.

About Astronics

Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. The company operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and mass transit industries, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. Astronics Corporation was incorporated in 1968 and is headquartered in East Aurora, New York.

About Innovative Solutions and Support

Innovative Solutions and Support, Inc., a systems integrator, designs, develops, manufactures, sells, and services flight guidance, autothrottles, and cockpit display systems in the United States and internationally. It offers flat panel display systems that replicate the display of analog or digital displays on one screen and replace existing displays in legacy aircraft, as well as used for security monitoring on-board aircraft and as tactical workstations on military aircraft; and flight deck management system, a navigation and performance computer that upgrade for commercial air transport aircraft. The company also provides integrated standby units, which incorporate the measurement and display of attitude, altitude, airspeed, and navigation data into a single backup navigation instrument for military, commercial air transport, and corporate/general aviation applications. In addition, it offers digital air data computers that calculate various air data parameters, such as altitude, airspeed, vertical speed, angle of attack, and other information; integrated air data computers and display units, which calculate and convey air data information; altitude displays that convey aircraft altitude measurements; airspeed displays that convey various airspeed measurements; and altitude alerters. Further, the company offers the engine and fuel displays that convey information related to fuel and oil levels, and engine activity, including oil and hydraulic pressure and temperature; integrated global navigation systems; ThrustSense, a full regime autothrottle; and utility management systems. It serves commercial air transport carriers and corporate/general aviation companies, the Department of Defense and its commercial contractors, aircraft operators, aircraft modification centers, government agencies, and foreign militaries, as well as original equipment manufacturers. Innovative Solutions and Support, Inc. was incorporated in 1988 and is based in Exton, Pennsylvania.