Critical Analysis: Spirit Aerosystems (NYSE:SPR) & Applied Visual Sciences (OTCMKTS:APVS)

Spirit Aerosystems (NYSE:SPR) and Applied Visual Sciences (OTCMKTS:APVS) are both aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Valuation and Earnings

This table compares Spirit Aerosystems and Applied Visual Sciences”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spirit Aerosystems	$6.32 billion	0.75	-$2.14 billion	($20.02)	-2.01
Applied Visual Sciences	N/A	N/A	N/A	N/A	N/A

Applied Visual Sciences has lower revenue, but higher earnings than Spirit Aerosystems.

Risk & Volatility

Spirit Aerosystems has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Applied Visual Sciences has a beta of 6.74, indicating that its share price is 574% more volatile than the S&P 500.

Profitability

This table compares Spirit Aerosystems and Applied Visual Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spirit Aerosystems	-37.46%	N/A	-26.28%
Applied Visual Sciences	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for Spirit Aerosystems and Applied Visual Sciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spirit Aerosystems	1	3	0	1	2.20
Applied Visual Sciences	0	0	0	0	0.00

Spirit Aerosystems presently has a consensus price target of $38.63, suggesting a potential downside of 4.13%. Given Spirit Aerosystems’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Spirit Aerosystems is more favorable than Applied Visual Sciences.

Insider and Institutional Ownership

93.6% of Spirit Aerosystems shares are owned by institutional investors. 0.8% of Spirit Aerosystems shares are owned by insiders. Comparatively, 33.0% of Applied Visual Sciences shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Spirit Aerosystems beats Applied Visual Sciences on 5 of the 9 factors compared between the two stocks.

About Spirit Aerosystems

Spirit AeroSystems Holdings, Inc. engages in the design, engineering, manufacture, and marketing of commercial aerostructures worldwide. It operates through three segments: Commercial, Defense & Space, and Aftermarket. The Commercial segment offers forward, mid, and rear fuselage sections and systems, floor beams, nacelles, struts/pylons, horizontal and vertical stabilizers, flaps and slats flight control surfaces, wing structures, and wing systems. This segment primarily serves commercial and business/regional jet programs. The Defense & Space segment engages in the fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training on fuselage, strut, nacelle, and wing aerostructures; provision of missiles and hypersonics solutions, such as solid rocket motor throats, nozzles, re-entry vehicle thermal protections systems; forward cockpit and cabin, and fuselage work on rotorcraft aerostructures; and classified programs. This segment primarily serves U.S. Government defense programs. The Aftermarket segment provides maintenance, repair, and overhaul services; fuselage, strut, nacelle, and wing aerostructures spare parts; repair services for radome, flight control surfaces, and nacelles; rotable assets trading and leasing; and engineering services. This segment primarily serves both commercial and defense and space programs. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.

About Applied Visual Sciences

Applied Visual Sciences, Inc., a software technology company, designs and develops computer-vision detection solutions based on image processing science for aviation/homeland security and healthcare markets. It utilizes imaging technologies and analytics to create integrated information management technology products and services that address problems for corporations and governmental agencies. The company offers PinPoint, an intelligent computer-vision automated target recognition technology for the detection of guns, explosives, and other threat items contained in baggage in the airport environment or for building security applications; and Signature Mapping platform technology for use in the imaging field of diagnostic radiology and pathology. It also provides Signature Mapping Detection System, an automated hardware-software laboratory solution used to operate various infectious disease applications through multi-threaded detection algorithms. In addition, the company offers Signature Mapping Tuberculosis Detection software, an automated hardware and software technology platform; and Signature Mapping Breast Cancer Detection, a breast cancer detection solution. Applied Visual Sciences, Inc. markets its products through direct sales and indirect distribution channels worldwide. The company was formerly known as Guardian Technologies International, Inc. and changed its name to Applied Visual Sciences, Inc. in July 2010. Applied Visual Sciences, Inc. was founded in 1989 and is based in Leesburg, Virginia.