Head to Head Comparison: StandardAero (NYSE:SARO) and SIFCO Industries (NYSE:SIF)

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

Institutional and Insider Ownership

24.2% of SIFCO Industries shares are owned by institutional investors. 28.1% of SIFCO Industries shares are owned by 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for SIFCO Industries and StandardAero, as reported by MarketBeat.com.

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

StandardAero has a consensus target price of $35.67, suggesting a potential upside of 36.81%. Given StandardAero’s stronger consensus rating and higher possible upside, analysts clearly believe StandardAero is more favorable than SIFCO Industries.

Profitability

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

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

Valuation and Earnings

This table compares SIFCO Industries and StandardAero”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SIFCO Industries	$101.48 million	0.24	-$8.69 million	($1.35)	-2.96
StandardAero	$4.99 billion	1.75	N/A	N/A	N/A

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 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.

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.