Analyzing Park Aerospace (NYSE:PKE) & Loar (NYSE:LOAR)

Park Aerospace (NYSE:PKE) and Loar (NYSE:LOAR) are both aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park Aerospace	$54.42 million	4.90	$7.47 million	$0.37	35.59
Loar	$358.10 million	18.56	N/A	N/A	N/A

Park Aerospace has higher earnings, but lower revenue than Loar.

Analyst Recommendations

This is a summary of recent ratings for Park Aerospace and Loar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park Aerospace	0	0	0	0	N/A
Loar	0	1	3	0	2.75

Loar has a consensus target price of $75.75, suggesting a potential upside of 2.24%. Given Loar’s higher probable upside, analysts clearly believe Loar is more favorable than Park Aerospace.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Park Aerospace	12.15%	6.27%	5.44%
Loar	N/A	N/A	N/A

Institutional & Insider Ownership

77.8% of Park Aerospace shares are owned by institutional investors. 10.6% of Park Aerospace shares 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.

Summary

Park Aerospace beats Loar on 5 of the 9 factors compared between the two stocks.

About Park Aerospace

Park Aerospace Corp., an aerospace company, develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the aerospace market in North America, Asia, and Europe. It offers advanced composite materials, including film adhesives and lightning strike protection materials that are used to produce primary and secondary structures for jet engines, large and regional transport aircrafts, military aircrafts, unmanned aerial vehicles, business jets, general aviation aircrafts, and rotary wing aircrafts. The company also provides specialty ablative materials for rocket motors and nozzles; and specially designed materials for radome applications. In addition, it designs and fabricates composite parts, structures and assemblies, and low volume tooling for the aerospace industry. The company was formerly known as Park Electrochemical Corp. and changed its name to Park Aerospace Corp. in July 2019. Park Aerospace Corp. was incorporated in 1954 and is based in Westbury, New York.

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.