Critical Survey: CPI Aerostructures (NYSE:CVU) & Loar (NYSE:LOAR)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CPI Aerostructures and Loar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPI Aerostructures	0	0	0	0	0.00
Loar	0	1	3	0	2.75

Loar has a consensus target price of $85.50, suggesting a potential upside of 13.46%. Given Loar’s stronger consensus rating and higher possible upside, analysts plainly believe Loar is more favorable than CPI Aerostructures.

Earnings & Valuation

This table compares CPI Aerostructures and Loar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPI Aerostructures	$82.81 million	0.60	$17.20 million	$1.37	2.81
Loar	$378.81 million	17.85	N/A	N/A	N/A

CPI Aerostructures has higher earnings, but lower revenue than Loar.

Institutional and Insider Ownership

26.0% of CPI Aerostructures shares are held by institutional investors. 8.5% of CPI Aerostructures shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CPI Aerostructures	20.63%	13.98%	4.61%
Loar	N/A	N/A	N/A

About CPI Aerostructures

CPI Aerostructures, Inc. engages in the contract production of structural aircraft parts for fixed wing aircraft and helicopters in the commercial and defense markets. The company offers aerostructure and aerosystem assemblies, including new production and repair/overhaul of fielded wing structures and other control surfaces, rudder island, engine inlets/nacelles, engine exhaust manifolds, aircraft doors and windows, aircraft steps and racks, other aircraft secondary structures, airborne pod structures and integration of internal systems, radar housing structures, panel assemblies, and mechanical door locking and canopy lifting systems. It provides diameter tube bending, such as complex ducts and tubes in steel, aluminum, titanium, and nickel alloys; fusion welded fluid tanks, and resistance welding for spot and seam; wire harnesses; and power control, fuel management, power distribution, and fully integrated electrical control systems, as well as enclosures. In addition, the company offers engineering, program and supply chain management services, kitting contracts, and maintenance repair and overhaul services. The company was formerly known as Consortium of Precision Industries, Inc. and changed its name to CPI Aerostructures, Inc. in July 1992. CPI Aerostructures, Inc. was incorporated in 1980 and is headquartered in Edgewood, 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.