Critical Comparison: StandardAero (NYSE:SARO) & Intuitive Machines (NASDAQ:LUNR)

StandardAero (NYSE:SARO) and Intuitive Machines (NASDAQ:LUNR) are both mid-cap aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Profitability

This table compares StandardAero and Intuitive Machines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StandardAero	3.15%	9.63%	3.69%
Intuitive Machines	-87.58%	N/A	-7.07%

Valuation & Earnings

This table compares StandardAero and Intuitive Machines”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StandardAero	$5.24 billion	1.92	$10.97 million	$0.55	54.53
Intuitive Machines	$228.00 million	12.43	-$283.41 million	($2.47)	-6.36

StandardAero has higher revenue and earnings than Intuitive Machines. Intuitive Machines is trading at a lower price-to-earnings ratio than StandardAero, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for StandardAero and Intuitive Machines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StandardAero	1	5	4	0	2.30
Intuitive Machines	2	3	9	0	2.50

StandardAero presently has a consensus price target of $34.00, indicating a potential upside of 13.36%. Intuitive Machines has a consensus price target of $17.27, indicating a potential upside of 9.88%. Given StandardAero’s higher possible upside, research analysts plainly believe StandardAero is more favorable than Intuitive Machines.

Volatility and Risk

StandardAero has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Intuitive Machines has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Institutional and Insider Ownership

72.2% of Intuitive Machines shares are owned by institutional investors. 1.9% of StandardAero shares are owned by company insiders. Comparatively, 39.8% of Intuitive Machines shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

StandardAero beats Intuitive Machines on 8 of the 14 factors compared between the two stocks.

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.

About Intuitive Machines

Intuitive Machines, Inc. designs, manufactures, and operates space products and services in the United States. Its space systems and space infrastructure enable scientific and human exploration and utilization of lunar resources to support sustainable human presence on the moon. The company offers lunar access services, such µNova, lunar surface rover services, fixed lunar surface services, lunar orbit delivery services, rideshare delivery services to lunar orbit, as well as content sales and marketing sponsorships; and orbital services, including satellite delivery and rideshare, satellite servicing and refueling, space station servicing, satellite repositioning, and orbital debris removal. It also provides lunar data services, comprising Lunar data network, lunar south pole and far-side coverage, lunar positioning services, data relay, and data storage/caching. In addition, the company offers propulsion systems and navigation systems; engineering services contracts; lunar mobility vehicles, such as rovers and drones; power infrastructure that includes fission surface power; and human habitation systems. It serves its products to the U.S. government, commercial, and international customers. Intuitive Machines, Inc. was founded in 2013 and is headquartered in Houston, Texas.