Innovative Solutions and Support (NASDAQ:ISSC) vs. Ducommun (NYSE:DCO) Financial Contrast

Ducommun (NYSE:DCO) and Innovative Solutions and Support (NASDAQ:ISSC) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Profitability

This table compares Ducommun and Innovative Solutions and Support’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ducommun	5.89%	9.52%	5.37%
Innovative Solutions and Support	20.50%	30.53%	17.28%

Valuation & Earnings

This table compares Ducommun and Innovative Solutions and Support”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ducommun	$824.73 million	2.54	-$37.35 million	$3.32	41.78
Innovative Solutions and Support	$93.15 million	4.26	$15.63 million	$1.05	21.11

Innovative Solutions and Support has lower revenue, but higher earnings than Ducommun. Innovative Solutions and Support is trading at a lower price-to-earnings ratio than Ducommun, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Ducommun and Innovative Solutions and Support, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ducommun	0	3	5	0	2.62
Innovative Solutions and Support	0	2	1	2	3.00

Ducommun currently has a consensus target price of $196.67, suggesting a potential upside of 41.78%. Innovative Solutions and Support has a consensus target price of $16.25, suggesting a potential downside of 26.69%. Given Ducommun’s higher possible upside, research analysts clearly believe Ducommun is more favorable than Innovative Solutions and Support.

Insider & Institutional Ownership

92.2% of Ducommun shares are held by institutional investors. Comparatively, 28.5% of Innovative Solutions and Support shares are held by institutional investors. 5.0% of Ducommun shares are held by company insiders. Comparatively, 5.9% of Innovative Solutions and Support 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.

Risk & Volatility

Ducommun has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Innovative Solutions and Support has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Summary

Innovative Solutions and Support beats Ducommun on 8 of the 15 factors compared between the two stocks.

About Ducommun

Ducommun Inc. is a provider of engineering and manufacturing services for the aerospace, defense and industrial markets. Founded in 1849 in Los Angeles, the company began as a hardware business before expanding into manufacturing components for aerospace and defense applications. Ducommun operates through its Electronic Systems and Structural Systems businesses. Its products and services include electronic and electromechanical assemblies, circuit-card assemblies, interconnect systems, precision-machined parts, structural components and composite assemblies.

About Innovative Solutions and Support

Innovative Solutions and Support, Inc. (NASDAQ: ISSC) designs, develops, manufactures and supports avionics systems for commercial, business and military aircraft. Its products include cockpit display and flight guidance systems, air data computers, and engine indication and crew alerting systems. The company serves both new aircraft programs and operators seeking to modernize or upgrade existing aircraft. Its systems are used in a range of aircraft platforms, and ISSC supports customers in markets around the world.