Loar (LOAR) vs. Its Peers Financial Analysis

Loar (NYSE:LOAR) is one of 46 public companies in the “AEROSP/DEF EQ” industry, but how does it weigh in compared to its rivals? We will compare Loar to related companies based on the strength of its risk, profitability, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Loar and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loar	8.29%	5.23%	3.54%
Loar Competitors	-42.30%	-0.30%	3.35%

Risk and Volatility

Loar has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Loar’s rivals have a beta of 0.93, suggesting that their average stock price is 7% less volatile than the S&P 500.

Insider and Institutional Ownership

65.1% of shares of all “AEROSP/DEF EQ” companies are owned by institutional investors. 22.6% of Loar shares are owned by company insiders. Comparatively, 8.8% of shares of all “AEROSP/DEF EQ” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Loar and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Loar	$402.82 million	$22.23 million	217.32
Loar Competitors	$3.45 billion	$265.50 million	72.82

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loar	0	0	3	0	3.00
Loar Competitors	347	1806	2753	93	2.52

Loar presently has a consensus price target of $97.00, indicating a potential upside of 17.46%. As a group, “AEROSP/DEF EQ” companies have a potential downside of 0.40%. Given Loar’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Loar is more favorable than its rivals.

Summary

Loar beats its rivals on 8 of the 13 factors compared.

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.