Financial Survey: StandardAero (NYSE:SARO) versus SIFCO Industries (NYSE:SIF)

StandardAero (NYSE:SARO) and SIFCO Industries (NYSE:SIF) are both aerospace companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Institutional and Insider Ownership

24.2% of SIFCO Industries shares are owned by institutional investors. 28.1% of SIFCO Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for StandardAero and SIFCO Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StandardAero	0	3	6	1	2.80
SIFCO Industries	0	0	0	0	0.00

StandardAero presently has a consensus price target of $35.67, indicating a potential upside of 42.61%. Given StandardAero’s stronger consensus rating and higher probable upside, equities research analysts plainly believe StandardAero is more favorable than SIFCO Industries.

Profitability

This table compares StandardAero and SIFCO Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StandardAero	N/A	N/A	N/A
SIFCO Industries	-7.92%	-25.72%	-7.88%

Earnings & Valuation

This table compares StandardAero and SIFCO Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StandardAero	$4.99 billion	1.68	N/A	N/A	N/A
SIFCO Industries	$101.48 million	0.22	-$8.69 million	($1.35)	-2.71

StandardAero has higher revenue and earnings than SIFCO Industries.

Summary

StandardAero beats SIFCO Industries on 9 of the 11 factors compared between the two stocks.

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.

About SIFCO Industries

SIFCO Industries, Inc., together with its subsidiaries, produces and sells forgings and machined components primarily for the aerospace and energy markets in North America and Europe. The company’s processes and services include forging, heat-treating, chemical processing, and machining. It also offers original equipment manufacturer and aftermarket components for aircraft and industrial gas turbine engines; steam turbine blades; structural airframe components; aircraft landing gear components; aircraft wheels and brakes; rotating components for helicopters; and commercial/industrial products. In addition, the company provides heat-treatment, surface-treatment, non-destructive testing, and select machining and sub-assembly of forged components. SIFCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.