MDA Space (NYSE:MDA) and AAR (NYSE:AIR) Head to Head Analysis

AAR (NYSE:AIR) and MDA Space (NYSE:MDA) are both mid-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Insider and Institutional Ownership

90.7% of AAR shares are held by institutional investors. 3.1% of AAR shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares AAR and MDA Space’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AAR	5.55%	12.99%	6.47%
MDA Space	5.68%	9.42%	4.20%

Earnings and Valuation

This table compares AAR and MDA Space”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AAR	$3.31 billion	1.23	$187.70 million	$4.88	20.84
MDA Space	$1.17 billion	4.11	$77.65 million	$0.54	54.83

AAR has higher revenue and earnings than MDA Space. AAR is trading at a lower price-to-earnings ratio than MDA Space, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for AAR and MDA Space, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AAR	0	4	4	0	2.50
MDA Space	0	3	7	1	2.82

AAR presently has a consensus target price of $140.60, indicating a potential upside of 38.22%. MDA Space has a consensus target price of $50.00, indicating a potential upside of 68.86%. Given MDA Space’s stronger consensus rating and higher possible upside, analysts clearly believe MDA Space is more favorable than AAR.

About AAR

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes. This segment also develops specific aircraft components and parts; and designs proprietary designated engineering representative repairs. The Integrated Solutions segment engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services; and flight hour component inventory and repair services. In addition, the segment provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating MRO workflows. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets; and containers and shelters for military and humanitarian tactical deployment activities, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters, as well as engages in provision of engineering, design, and system integration services for specialized command and control systems. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.

About MDA Space

MDA Space Ltd is a developer and manufacturer of technology and services to the space industry. It is an international space mission partner and robotics, satellite systems, and geo-intelligence pioneer. It is engaged in communications satellites, Earth and space observation, space exploration, and infrastructure. The Company collaborates and partners with governments and space agencies, commercial space companies, and defence and aerospace prime contractors in the space industry. Geographically, it generates the majority of its revenue from Canada.