Spirit Aerosystems (NYSE:SPR) vs. Rocket Lab (NASDAQ:RKLB) Head to Head Analysis

Rocket Lab (NASDAQ:RKLB) and Spirit Aerosystems (NYSE:SPR) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Earnings and Valuation

This table compares Rocket Lab and Spirit Aerosystems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rocket Lab	$436.21 million	34.85	-$190.18 million	($0.40)	-83.80
Spirit Aerosystems	$6.14 billion	0.71	-$2.14 billion	($18.22)	-2.03

Rocket Lab has higher earnings, but lower revenue than Spirit Aerosystems. Rocket Lab is trading at a lower price-to-earnings ratio than Spirit Aerosystems, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

71.8% of Rocket Lab shares are held by institutional investors. Comparatively, 93.6% of Spirit Aerosystems shares are held by institutional investors. 13.7% of Rocket Lab shares are held by company insiders. Comparatively, 0.8% of Spirit Aerosystems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Rocket Lab has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, Spirit Aerosystems has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Profitability

This table compares Rocket Lab and Spirit Aerosystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rocket Lab	-44.32%	-48.92%	-17.28%
Spirit Aerosystems	-34.81%	N/A	-24.58%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Rocket Lab and Spirit Aerosystems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rocket Lab	0	5	7	1	2.69
Spirit Aerosystems	0	12	0	1	2.15

Rocket Lab presently has a consensus price target of $28.10, suggesting a potential downside of 16.17%. Spirit Aerosystems has a consensus price target of $36.56, suggesting a potential downside of 1.17%. Given Spirit Aerosystems’ higher possible upside, analysts plainly believe Spirit Aerosystems is more favorable than Rocket Lab.

Summary

Rocket Lab beats Spirit Aerosystems on 8 of the 14 factors compared between the two stocks.

About Rocket Lab

Rocket Lab USA, Inc., a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets. It also designs, manufactures, and sells Electron, a reusable orbital-class small rocket; and the Photon satellite platforms, as well as developing the Neutron 8-ton payload class launch vehicle; conducts remote launch activities; and designs and manufactures a range of components and subsystems for the Photon family of spacecraft and broader merchant spacecraft components. The company serves commercial, aerospace prime contractors, and government customers. Rocket Lab USA, Inc. was founded in 2006 and is headquartered in Long Beach, California.

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.