VSE (NASDAQ:VSEC) vs. Sypris Solutions (NASDAQ:SYPR) Financial Analysis

Sypris Solutions (NASDAQ:SYPR) and VSE (NASDAQ:VSEC) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Volatility and Risk

Sypris Solutions has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, VSE has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Profitability

This table compares Sypris Solutions and VSE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sypris Solutions	-9.23%	-67.14%	-9.87%
VSE	6.17%	6.71%	4.76%

Insider & Institutional Ownership

44.7% of Sypris Solutions shares are owned by institutional investors. Comparatively, 91.5% of VSE shares are owned by institutional investors. 47.9% of Sypris Solutions shares are owned by insiders. Comparatively, 1.8% of VSE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Sypris Solutions and VSE”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sypris Solutions	$119.89 million	0.35	-$6.34 million	($0.47)	-3.83
VSE	$1.11 billion	4.22	$11.70 million	$3.12	53.62

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Sypris Solutions and VSE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sypris Solutions	1	0	0	0	1.00
VSE	0	4	7	1	2.75

VSE has a consensus price target of $260.00, indicating a potential upside of 55.43%. Given VSE’s stronger consensus rating and higher possible upside, analysts clearly believe VSE is more favorable than Sypris Solutions.

Summary

VSE beats Sypris Solutions on 14 of the 15 factors compared between the two stocks.

About Sypris Solutions

Sypris Solutions, Inc. engages in the provision of truck components, oil and gas pipeline components, and aerospace and defense electronics. It operates through Sypris Technologies and Sypris Electronics segments. The Sypris Technologies segment is involved in selling of forged, machined, welded, and heat-treated steel components primarily for the heavy commercial vehicle and high-pressure energy pipeline applications. The Sypris Electronics segment includes circuit card and full box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability and design to specification work. The company was founded in 1997 and is headquartered in Louisville, KY.

About VSE

VSE Corporation operates as a diversified aftermarket products and services company in the United States. The company operates through two segments, Aviation and Fleet. The Aviation segment provides aftermarket parts supply and distribution; maintenance, repair, and overhaul services for components and engine accessories supporting commercial, business, and general aviation operators. This segment serves commercial airlines, regional airlines, cargo transporters, MRO integrators and providers, aviation manufacturers, corporate and private aircraft owners, and fixed-base operators. The Fleet segment offers parts supply, inventory management, e-commerce fulfillment, logistics, supply chain support, and other services to support the commercial aftermarket medium- and heavy-duty truck market. This segment also provides sale of vehicle parts and supply chain services to support client truck fleets, as well as sustainment solutions and managed inventory services to government and commercial truck fleets. VSE Corporation was incorporated in 1959 and is headquartered in Alexandria, Virginia.