Financial Analysis: GE Aerospace (NYSE:GE) & Sypris Solutions (NASDAQ:SYPR)

Sypris Solutions (NASDAQ:SYPR) and GE Aerospace (NYSE:GE) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Earnings and Valuation

This table compares Sypris Solutions and GE Aerospace”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sypris Solutions	$119.89 million	0.36	-$6.34 million	($0.47)	-4.04
GE Aerospace	$50.64 billion	6.85	$8.70 billion	$8.49	39.39

GE Aerospace has higher revenue and earnings than Sypris Solutions. Sypris Solutions is trading at a lower price-to-earnings ratio than GE Aerospace, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Sypris Solutions and GE Aerospace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sypris Solutions	1	0	0	0	1.00
GE Aerospace	1	2	16	0	2.79

GE Aerospace has a consensus target price of $390.59, suggesting a potential upside of 16.80%. Given GE Aerospace’s stronger consensus rating and higher probable upside, analysts clearly believe GE Aerospace is more favorable than Sypris Solutions.

Profitability

This table compares Sypris Solutions and GE Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sypris Solutions	-9.23%	-67.14%	-9.87%
GE Aerospace	17.72%	40.56%	5.84%

Volatility and Risk

Sypris Solutions has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, GE Aerospace has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Insider & Institutional Ownership

44.7% of Sypris Solutions shares are owned by institutional investors. Comparatively, 74.8% of GE Aerospace shares are owned by institutional investors. 47.9% of Sypris Solutions shares are owned by company insiders. Comparatively, 0.2% of GE Aerospace shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

GE Aerospace beats Sypris Solutions on 13 of the 14 factors compared between the two stocks.

About Sypris Solutions

Sypris Solutions, Inc. engages in the provision of truck components, oil and gas pipeline components, and aerospace and defense electronics. It operates through Sypris Technologies and Sypris Electronics segments. The Sypris Technologies segment is involved in selling of forged, machined, welded, and heat-treated steel components primarily for the heavy commercial vehicle and high-pressure energy pipeline applications. The Sypris Electronics segment includes circuit card and full box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability and design to specification work. The company was founded in 1997 and is headquartered in Louisville, KY.

About GE Aerospace

GE Aerospace (also known as General Electric) is a company that specializes in providing aerospace products and services. It operates through two reportable segments: Commercial Engines and Services and Defense and Propulsion Technologies. It offers jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft. GE demerged into GE Vernova, GE Aerospace, and GE Healthcare.