Honeywell Aerospace (NASDAQ:HONA) and Loar (NYSE:LOAR) Critical Comparison

Loar (NYSE:LOAR) and Honeywell Aerospace (NASDAQ:HONA) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Profitability

This table compares Loar and Honeywell Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loar	11.60%	9.37%	5.39%
Honeywell Aerospace	N/A	N/A	N/A

Earnings and Valuation

This table compares Loar and Honeywell Aerospace”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loar	$496.28 million	14.44	$72.15 million	$0.72	106.20
Honeywell Aerospace	N/A	N/A	N/A	$1.87	88.66

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Loar and Honeywell Aerospace, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loar	0	3	4	0	2.57
Honeywell Aerospace	0	10	4	1	2.40

Loar presently has a consensus price target of $88.00, suggesting a potential upside of 15.09%. Honeywell Aerospace has a consensus price target of $224.17, suggesting a potential upside of 35.21%. Given Honeywell Aerospace’s higher probable upside, analysts clearly believe Honeywell Aerospace is more favorable than Loar.

Summary

Loar beats Honeywell Aerospace on 6 of the 9 factors compared between the two stocks.

About Loar

Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, actuation devices, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was founded in 2017 and is headquartered in White Plains, New York.

About Honeywell Aerospace

Honeywell Aerospace Inc. manufactures and supplies aircraft components, avionics, engines, and systems for airframe manufacturing, commercial airline, military and defense, business aviation, and space markets, as well as other markets in the aerospace industry. The company offers actuation products, air and thermal management products, auxiliary power units, cabin management and entertainment products, cockpit systems and displays, electric power products, engines, health and usage monitoring products, lighting products, microelectronics, navigation products and radios, recorders and transmitters, satellite communications, sensors, space products, terrain and traffic awareness, vehicle turbochargers, weather radars, and wheels and braking systems. It also provides aerospace trading, asset availability, cabin connectivity, maintenance and service plans, certifications, training, and other flight services; and GoDirect Trade, an e-commerce platform that offers access to new and used air transport and business aircraft parts. The company’s platform includes business jets, airlines/cargo planes, helicopters, defense, space, general aviation, and automotive platforms. It provides products and services to military fixed and rotary wing operators in South America, Latin America, Africa, and the Middle East. The company was founded in 1914 and is based in Phoenix, Arizona. Honeywell Aerospace Inc. is as a prior subsidiary of Honeywell International Inc.