Head to Head Analysis: Redwire (NYSE:RDW) and Conrad Industries (OTCMKTS:CNRD)

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

Insider and Institutional Ownership

8.1% of Redwire shares are owned by institutional investors. Comparatively, 0.6% of Conrad Industries shares are owned by institutional investors. 0.8% of Redwire shares are owned by insiders. Comparatively, 31.5% of Conrad Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Redwire and Conrad Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redwire	-80.90%	-11.68%	-7.86%
Conrad Industries	6.07%	19.54%	12.74%

Risk and Volatility

Redwire has a beta of 2.92, suggesting that its stock price is 192% more volatile than the S&P 500. Comparatively, Conrad Industries has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Valuation and Earnings

This table compares Redwire and Conrad Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwire	$335.38 million	7.75	-$226.55 million	($2.68)	-5.05
Conrad Industries	$327.55 million	0.39	$19.88 million	$3.83	6.71

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	2	3	6	1	2.50
Conrad Industries	0	0	0	0	0.00

Redwire currently has a consensus price target of $15.44, suggesting a potential upside of 14.11%. Given Redwire’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Redwire is more favorable than Conrad Industries.

Summary

Redwire beats Conrad Industries on 8 of the 15 factors compared between the two stocks.

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.

About Conrad Industries

Conrad Industries, Inc. engages in the construction, conversion, and repair of various steel and aluminum marine vessels in the United States. The company builds harbor tugs; specialty barges, such as crane, deck, ABS class, dry bulk cargo, aggregate, and well stim barges; inland tank, LPG inland tank, LPG pressure, LPG tank, and DS tank barges; and offshore support vessels, including liftboats, crew boats, offshore supply vessels, and offshore tugs, as well as other support equipment, such as deck and crane barges. It also builds inland pushboats comprising inland towboats, inland river push boats, and towboats; and ferries, which consist of passenger, and passenger and vehicle ferries. In addition, the company offers repairs and conversions, including electrical, mechanical, propulsion, and hull repairs to large-scale conversions of ships and barges; and engages in the fabrication of modular components for offshore floating production, storage, and offloading vessels, as well as drilling rigs. The company was founded in 1948 and is headquartered in Morgan City, Louisiana.