Head to Head Comparison: New Horizon Aircraft (NASDAQ:HOVR) & Embraer (NYSE:ERJ)

Embraer (NYSE:ERJ) and New Horizon Aircraft (NASDAQ:HOVR) are both aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

34.7% of Embraer shares are owned by institutional investors. Comparatively, 66.0% of New Horizon Aircraft shares are owned by institutional investors. 1.0% of Embraer shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Embraer and New Horizon Aircraft, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embraer	0	2	4	0	2.67
New Horizon Aircraft	0	0	0	0	N/A

Embraer currently has a consensus price target of $29.75, indicating a potential upside of 25.11%. Given Embraer’s higher possible upside, equities research analysts plainly believe Embraer is more favorable than New Horizon Aircraft.

Earnings and Valuation

This table compares Embraer and New Horizon Aircraft’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embraer	$5.27 billion	N/A	$164.00 million	$0.89	26.72
New Horizon Aircraft	N/A	N/A	$8.61 million	N/A	N/A

Embraer has higher revenue and earnings than New Horizon Aircraft.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Embraer	3.11%	2.80%	0.75%
New Horizon Aircraft	N/A	-137.31%	7.13%

Summary

Embraer beats New Horizon Aircraft on 7 of the 9 factors compared between the two stocks.

About Embraer

Embraer S.A. designs, develops, manufactures, and sells aircraft and systems in North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. The company operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment designs, develops, manufactures, and sells commercial jets, as well as leases aircraft. The Defense & Security segment engages in the research, development, production, modification, and support for military defense and security aircraft; and offers a range of products and integrated solutions that include radars, special space systems, and cyber security solutions, as well as information and communications systems comprising command, control, communications, computer, intelligence, surveillance, and reconnaissance systems. The Executive Aviation segment develops, produces, and sells executive jets. This segment also leases Phenom family executive jets in the entry jet and light jet categories; and Praetor 500 and Praetor 600, disruptive executive jets in the midsize and super midsize categories. The Service & Support segment provides after-service solutions and support services; maintenance, repair, and overhaul services for commercial, executive, and defense aircraft; and aircraft components and engines. This segment also supplies steel and composite aviation structures to various aircraft manufacturers. The Other segment engages in the supply of fuel systems, structural parts, and mechanical and hydraulic systems; and production of agricultural crop-spraying aircraft. The company was formerly known as Embraer-Empresa Brasileira de Aeronáutica S.A. and changed its name to Embraer S.A. in November 2010. Embraer S.A. was incorporated in 1969 and is headquartered in São Paulo, Brazil.

About New Horizon Aircraft

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