Head to Head Contrast: StandardAero (SARO) and Its Competitors

StandardAero (NYSE:SARO) is one of 33 public companies in the “AEROSP/DEFENSE” industry, but how does it contrast to its competitors? We will compare StandardAero to similar businesses based on the strength of its earnings, risk, analyst recommendations, institutional ownership, valuation, profitability and dividends.

Profitability

This table compares StandardAero and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StandardAero	2.37%	8.87%	2.98%
StandardAero Competitors	-957.17%	-50.06%	-10.72%

Institutional and Insider Ownership

53.5% of shares of all “AEROSP/DEFENSE” companies are owned by institutional investors. 10.0% of shares of all “AEROSP/DEFENSE” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for StandardAero and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StandardAero	0	3	5	1	2.78
StandardAero Competitors	406	2173	3399	126	2.53

StandardAero presently has a consensus target price of $34.67, suggesting a potential upside of 30.48%. As a group, “AEROSP/DEFENSE” companies have a potential upside of 1.17%. Given StandardAero’s stronger consensus rating and higher probable upside, equities analysts clearly believe StandardAero is more favorable than its competitors.

Earnings and Valuation

This table compares StandardAero and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
StandardAero	$5.24 billion	$10.97 million	64.80
StandardAero Competitors	$18.81 billion	$730.78 million	11.11

StandardAero’s competitors have higher revenue and earnings than StandardAero. StandardAero is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

StandardAero beats its competitors on 7 of the 12 factors compared.

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.