Critical Analysis: Loar (NYSE:LOAR) versus EHang (NASDAQ:EH)

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

Valuation & Earnings

This table compares Loar and EHang”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loar	N/A	N/A	N/A	N/A	N/A
EHang	$16.54 million	70.79	-$42.49 million	($0.58)	-31.78

Loar has higher earnings, but lower revenue than EHang.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Loar	N/A	N/A	N/A
EHang	-110.21%	-84.09%	-35.65%

Analyst Ratings

This is a breakdown of current ratings and price targets for Loar and EHang, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loar	0	1	3	0	2.75
EHang	0	0	3	0	3.00

Loar currently has a consensus price target of $77.00, suggesting a potential downside of 7.52%. EHang has a consensus price target of $24.75, suggesting a potential upside of 34.26%. Given EHang’s stronger consensus rating and higher possible upside, analysts plainly believe EHang is more favorable than Loar.

Insider and Institutional Ownership

94.0% of EHang shares are held by institutional investors. 39.6% of EHang shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

EHang beats Loar on 5 of the 8 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 EHang

EHang Holdings Limited operates as an autonomous aerial vehicle (AAV) technology platform company in the People's Republic of China, East Asia, West Asia, Europe, and internationally. It designs, develops, manufactures, sells, and operates AAVs, as well as their supporting systems and infrastructure for various industries and applications, including passenger transportation, logistics, smart city management, and aerial media solutions. The company was incorporated in 2014 and is headquartered in Guangzhou, the People's Republic of China.