Vertical Aerospace (NYSE:EVTL) vs. L3Harris Technologies (NYSE:LHX) Financial Analysis

Vertical Aerospace (NYSE:EVTL) and L3Harris Technologies (NYSE:LHX) are both aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Earnings and Valuation

This table compares Vertical Aerospace and L3Harris Technologies”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	$307.16 million	($3.46)	-0.62
L3Harris Technologies	$21.87 billion	2.62	$1.61 billion	$9.21	33.40

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

Insider and Institutional Ownership

81.2% of Vertical Aerospace shares are owned by institutional investors. Comparatively, 84.8% of L3Harris Technologies shares are owned by institutional investors. 74.8% of Vertical Aerospace shares are owned by company insiders. Comparatively, 0.7% of L3Harris Technologies shares are owned by company 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.

Risk & Volatility

Vertical Aerospace has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, L3Harris Technologies has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Profitability

This table compares Vertical Aerospace and L3Harris Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vertical Aerospace	N/A	-197.90%	-94.59%
L3Harris Technologies	7.71%	10.65%	5.05%

Analyst Ratings

This is a breakdown of current ratings and price targets for Vertical Aerospace and L3Harris Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertical Aerospace	2	1	5	0	2.38
L3Harris Technologies	0	4	11	2	2.88

Vertical Aerospace presently has a consensus price target of $11.30, suggesting a potential upside of 426.81%. L3Harris Technologies has a consensus price target of $354.75, suggesting a potential upside of 15.33%. Given Vertical Aerospace’s higher possible upside, analysts clearly believe Vertical Aerospace is more favorable than L3Harris Technologies.

Summary

L3Harris Technologies beats Vertical Aerospace on 11 of the 14 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 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.