VSE (NASDAQ:VSEC – Get Free Report) and Sypris Solutions (NASDAQ:SYPR – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
91.5% of VSE shares are owned by institutional investors. Comparatively, 44.7% of Sypris Solutions shares are owned by institutional investors. 1.8% of VSE shares are owned by company insiders. Comparatively, 47.9% of Sypris Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares VSE and Sypris Solutions”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| VSE | $1.11 billion | 4.22 | $11.70 million | $3.12 | 53.62 |
| Sypris Solutions | $119.89 million | 0.35 | -$6.34 million | ($0.47) | -3.83 |
VSE has higher revenue and earnings than Sypris Solutions. Sypris Solutions is trading at a lower price-to-earnings ratio than VSE, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
VSE has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Sypris Solutions has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for VSE and Sypris Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| VSE | 0 | 4 | 7 | 1 | 2.75 |
| Sypris Solutions | 1 | 0 | 0 | 0 | 1.00 |
VSE presently has a consensus price target of $260.00, suggesting a potential upside of 55.43%. Given VSE’s stronger consensus rating and higher probable upside, research analysts clearly believe VSE is more favorable than Sypris Solutions.
Profitability
This table compares VSE and Sypris Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| VSE | 6.17% | 6.71% | 4.76% |
| Sypris Solutions | -9.23% | -67.14% | -9.87% |
Summary
VSE beats Sypris Solutions on 14 of the 15 factors compared between the two stocks.
About VSE
VSE Corporation operates as a diversified aftermarket products and services company in the United States. The company operates through two segments, Aviation and Fleet. The Aviation segment provides aftermarket parts supply and distribution; maintenance, repair, and overhaul services for components and engine accessories supporting commercial, business, and general aviation operators. This segment serves commercial airlines, regional airlines, cargo transporters, MRO integrators and providers, aviation manufacturers, corporate and private aircraft owners, and fixed-base operators. The Fleet segment offers parts supply, inventory management, e-commerce fulfillment, logistics, supply chain support, and other services to support the commercial aftermarket medium- and heavy-duty truck market. This segment also provides sale of vehicle parts and supply chain services to support client truck fleets, as well as sustainment solutions and managed inventory services to government and commercial truck fleets. VSE Corporation was incorporated in 1959 and is headquartered in Alexandria, Virginia.
About Sypris Solutions
Sypris Solutions, Inc. engages in the provision of truck components, oil and gas pipeline components, and aerospace and defense electronics. It operates through Sypris Technologies and Sypris Electronics segments. The Sypris Technologies segment is involved in selling of forged, machined, welded, and heat-treated steel components primarily for the heavy commercial vehicle and high-pressure energy pipeline applications. The Sypris Electronics segment includes circuit card and full box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability and design to specification work. The company was founded in 1997 and is headquartered in Louisville, KY.
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