Analyzing Alabama Aircraft Industries (OTCMKTS:AAIIQ) and New Horizon Aircraft (NASDAQ:HOVR)

Alabama Aircraft Industries (OTCMKTS:AAIIQ) and New Horizon Aircraft (NASDAQ:HOVR) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

66.0% of New Horizon Aircraft shares are held by institutional investors. 38.0% of Alabama Aircraft Industries shares are held by company insiders. Comparatively, 13.6% of New Horizon Aircraft shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Alabama Aircraft Industries and New Horizon Aircraft”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alabama Aircraft Industries	N/A	N/A	N/A	N/A	N/A
New Horizon Aircraft	N/A	N/A	-$8.16 million	N/A	N/A

Profitability

This table compares Alabama Aircraft Industries and New Horizon Aircraft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alabama Aircraft Industries	N/A	N/A	N/A
New Horizon Aircraft	N/A	-71.96%	211.11%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Alabama Aircraft Industries and New Horizon Aircraft, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alabama Aircraft Industries	0	0	0	0	0.00
New Horizon Aircraft	0	0	1	1	3.50

New Horizon Aircraft has a consensus target price of $2.00, indicating a potential upside of 199.40%. Given New Horizon Aircraft’s stronger consensus rating and higher possible upside, analysts clearly believe New Horizon Aircraft is more favorable than Alabama Aircraft Industries.

Summary

New Horizon Aircraft beats Alabama Aircraft Industries on 6 of the 8 factors compared between the two stocks.

About Alabama Aircraft Industries

Alabama Aircraft Industries, Inc provides aircraft maintenance and modification services to the United States government, foreign governments, and military customers. Its services include maintenance and modification of military transport, tanker, and petrol aircraft airframes; and aircraft maintenance and modification services, such as complete airframe maintenance and repair, and custom air frame design and modification. The company’s services also comprise scheduled and unscheduled maintenance; interior refurbishment and reconfiguration; lavatory, galley, airstair, and auxiliary fuel tank installations; aging aircraft inspection; structural and accident damage repair; manufacturing and parts fabrication; composite repair; service bulletin and AD compliance; component repair and overhaul; EPA approved stripping and painting; CPCP; non-destructive testing; avionics upgrades and installation; and FAA repair station RJ1R454K. Its principal services performed under military contracts are programmed depot maintenance, aircraft modifications, aircraft stripping and painting, rewiring, parts fabrication, engineering support services, system integration of component upgrades, and modification of fixed wing aircrafts. In addition, the company offers airframe corrosion prevention and control, rewiring, and component overhauls, as well as structural, avionics, and other systems modification services. It provides its services directly as a prime contractor or indirectly as a sub- contractor. The company was formerly known as Pemco Aviation Group, Inc. and changed its name to Alabama Aircraft Industries Inc. in September 2007. Alabama Aircraft Industries, Inc was founded in 1983 and is based in Birmingham, Alabama. On Nov 3, 2011, the voluntary petition of Alabama Aircraft Industries, Inc., along with its affiliates, for reorganization under Ch 11 was converted to Ch 7. It had filed for Chapter 11 bankruptcy on Feb 15, 2011.

About New Horizon Aircraft

New Horizon Aircraft Ltd., an aerospace original equipment manufacturer company, focuses on designing and developing hybrid electric vertical takeoff and landing (eVTOL) aircraft for the regional air mobility market in the Uinted States. The company is developing Cavorite X7, a hybrid electric 7-seat aircraft that can take off and land vertically like and helicopter. New Horizon Aircraft Ltd. was founded in 2013 and is headquartered in Lindsay, Canada.