Reviewing Howmet Aerospace (NYSE:HWM) & Redwire (NYSE:RDW)

Redwire (NYSE:RDW) and Howmet Aerospace (NYSE:HWM) are both aerospace companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Redwire and Howmet Aerospace, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	2	2	6	0	2.40
Howmet Aerospace	0	4	14	0	2.78

Redwire currently has a consensus target price of $14.25, indicating a potential upside of 156.99%. Howmet Aerospace has a consensus target price of $215.29, indicating a potential upside of 6.93%. Given Redwire’s higher possible upside, research analysts clearly believe Redwire is more favorable than Howmet Aerospace.

Profitability

This table compares Redwire and Howmet Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redwire	-70.32%	-16.24%	-7.20%
Howmet Aerospace	18.09%	28.17%	12.26%

Earnings & Valuation

This table compares Redwire and Howmet Aerospace”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwire	$304.10 million	2.63	-$114.32 million	($3.17)	-1.75
Howmet Aerospace	$7.98 billion	10.15	$1.16 billion	$3.56	56.56

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

Risk & Volatility

Redwire has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500. Comparatively, Howmet Aerospace has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Institutional and Insider Ownership

8.1% of Redwire shares are held by institutional investors. Comparatively, 90.5% of Howmet Aerospace shares are held by institutional investors. 2.6% of Redwire shares are held by company insiders. Comparatively, 1.0% of Howmet Aerospace shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Howmet Aerospace beats Redwire on 11 of the 14 factors compared between the two stocks.

About Redwire

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft. It offers software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company microgravity payloads, radio frequency systems, antennas, star trackers, platforms, and in-space manufacturing and biotech facilities. Redwire Corporation is headquartered in Jacksonville, Florida.

About Howmet Aerospace

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally. It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The Engine Products segment offers airfoils and seamless rolled rings primarily for aircraft engines and industrial gas turbines; and rotating and structural parts. The Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners; and latches, bearings, fluid fittings, and installation tools. The Engineered Structures segment provides titanium ingots and mill products, aluminum and nickel forgings, and machined components and assemblies for aerospace and defense applications; and titanium forgings, extrusions, and forming and machining services for airframe, wing, aero-engine, and landing gear components. The Forged Wheels segment offers forged aluminum wheels and related products for heavy-duty trucks and commercial transportation markets. The company was formerly known as Arconic Inc. Howmet Aerospace Inc. was founded in 1888 and is based in Pittsburgh, Pennsylvania.