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

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

Analyst Recommendations

This is a breakdown of recent recommendations for AIRO Group and Carpenter Technology, as reported by MarketBeat.

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

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

Risk and Volatility

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

Earnings & Valuation

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

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

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.

Institutional and Insider Ownership

92.0% of Carpenter Technology shares are owned by institutional investors. 22.9% of AIRO Group shares are owned by company insiders. Comparatively, 2.9% of Carpenter Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

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

Summary

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

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.

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.