Contrasting AIRO Group (NASDAQ:AIRO) & Carpenter Technology (NYSE:CRS)

Carpenter Technology (NYSE:CRS) and AIRO Group (NASDAQ:AIRO) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Carpenter Technology and AIRO Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carpenter Technology	0	4	5	0	2.56
AIRO Group	1	2	3	0	2.33

Carpenter Technology presently has a consensus price target of $476.43, indicating a potential upside of 64.05%. AIRO Group has a consensus price target of $16.50, indicating a potential upside of 245.19%. Given AIRO Group’s higher possible upside, analysts plainly believe AIRO Group is more favorable than Carpenter Technology.

Insider & Institutional Ownership

92.0% of Carpenter Technology shares are owned by institutional investors. 2.9% of Carpenter Technology shares are owned by company insiders. Comparatively, 22.9% of AIRO Group 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.

Earnings and Valuation

This table compares Carpenter Technology and AIRO Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carpenter Technology	$3.19 billion	4.51	$529.80 million	$11.34	25.61
AIRO Group	$90.91 million	1.66	-$4.10 million	($0.83)	-5.76

Carpenter Technology has higher revenue and earnings than AIRO Group. AIRO Group is trading at a lower price-to-earnings ratio than Carpenter Technology, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Carpenter Technology has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, AIRO Group has a beta of 2.2, suggesting that its stock price is 120% more volatile than the S&P 500.

Profitability

This table compares Carpenter Technology and AIRO Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carpenter Technology	17.87%	27.50%	15.76%
AIRO Group	-25.01%	-4.05%	-3.86%

Summary

Carpenter Technology beats AIRO Group on 11 of the 14 factors compared between the two stocks.

About Carpenter Technology

Carpenter Technology Corporation develops, manufactures and distributes specialty alloys and engineered materials for applications that require high performance in demanding environments. Its products include specialty steels, nickel- and cobalt-based alloys, titanium alloys, and precision-engineered components. The company serves customers in industries including aerospace and defense, medical, energy, transportation and industrial manufacturing. Its materials are used in products and equipment where strength, heat resistance, corrosion resistance or other specialized properties are important.

About AIRO Group

AIRO Group is an aerospace and defense company that develops and supplies technologies for commercial, government and defense customers. Its businesses span unmanned aircraft systems, avionics, pilot training and electric air mobility. The company’s offerings include drones and related systems, cockpit avionics through its Aspen Avionics business, and flight-training services. Its electric-air-mobility activities include the development of electric vertical takeoff and landing aircraft through Jaunt Air Mobility.