Spire Global (NYSE:SPIR) versus Safran (OTCMKTS:SAFRY) Critical Review

Safran (OTCMKTS:SAFRY) and Spire Global (NYSE:SPIR) are both aerospace companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Volatility & Risk

Safran has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Spire Global has a beta of 2.44, suggesting that its share price is 144% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Safran and Spire Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safran	0	3	4	2	2.89
Spire Global	1	2	2	0	2.20

Spire Global has a consensus price target of $11.10, indicating a potential upside of 42.42%. Given Spire Global’s higher probable upside, analysts plainly believe Spire Global is more favorable than Safran.

Profitability

This table compares Safran and Spire Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safran	N/A	N/A	N/A
Spire Global	40.08%	-80.89%	-25.80%

Insider & Institutional Ownership

0.1% of Safran shares are held by institutional investors. Comparatively, 20.0% of Spire Global shares are held by institutional investors. 14.7% of Spire Global shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Safran and Spire Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safran	$30.47 billion	4.94	-$721.76 million	N/A	N/A
Spire Global	$110.45 million	2.34	-$102.82 million	$0.38	20.51

Spire Global has lower revenue, but higher earnings than Safran.

Summary

Safran beats Spire Global on 7 of the 13 factors compared between the two stocks.

About Safran

Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide. The company operates through three segments: Aerospace Propulsion; Aircraft Equipment, Defense and Aerosystems; and Aircraft Interiors. The Aerospace Propulsion segment designs, develops, produces, and markets propulsion and mechanical power transmission systems for commercial aircraft, military transport, training and combat aircraft, civil and military helicopters, satellites, and drones; and offers maintenance, repair, and overhaul (MRO) services, as well as sells spare parts. The Aircraft Equipment, Defense and Aerosystems segment provides landing gears and brakes; nacelles and reversers; avionics, such as flight controls and onboard information systems; security systems, including evacuation slides and oxygen masks; onboard computers and fuel systems; electrical power management systems and related engineering services; and optronic equipment and sights, navigation equipment and sensors, infantry, and drones, as well as offers MRO services and sells spare parts. The Aircraft Interiors segment designs, develops, manufactures, and markets aircraft seats for passengers and crew; cabin equipment, overhead bins, class dividers, passenger service units, cabin interior solutions, chilling systems, galleys, electrical inserts, and trolleys and cargo equipment; and cabin and passenger solutions, such as water distribution equipment, lavatories, air systems, and in-flight entertainment and connectivity systems. Its products and services are used in civil and military aircraft, and helicopters. Safran SA was founded in 1896 and is based in Paris, France.

About Spire Global

Spire Global, Inc. provides subscription-based data, insights, predictive analytics, and related project-based services worldwide. The company offers satellite-based aircraft tracking data to power applications, drive decision making, and improve cost efficiencies; data, insights, and predictive analytics for highly accurate ship monitoring, real-time and near real-time vessel updates, port operations, ship safety and route optimization; and space-based data, AI-powered insights, and predictive weather analytics for accurate weather forecasting. It serves maritime, weather, aviation, and space services industries. The company was formerly known as Nanosatisfi, Inc. and changed its name to Spire Global, Inc. in July 2014. Spire Global, Inc. is headquartered in Vienna, Virginia.