Analyzing New Horizon Aircraft (NASDAQ:HOVR) & Signature Aviation (OTCMKTS:BBAVY)

New Horizon Aircraft (NASDAQ:HOVR) and Signature Aviation (OTCMKTS:BBAVY) are both aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Risk & Volatility

New Horizon Aircraft has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Signature Aviation has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.

Valuation and Earnings

This table compares New Horizon Aircraft and Signature Aviation”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Horizon Aircraft	N/A	N/A	-$8.16 million	N/A	N/A
Signature Aviation	$1.41 billion	3.24	-$9.60 million	N/A	N/A

New Horizon Aircraft has higher earnings, but lower revenue than Signature Aviation.

Institutional and Insider Ownership

66.0% of New Horizon Aircraft shares are held by institutional investors. 13.6% of New Horizon Aircraft shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for New Horizon Aircraft and Signature Aviation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Horizon Aircraft	0	0	1	1	3.50
Signature Aviation	0	0	0	0	0.00

New Horizon Aircraft presently has a consensus target price of $2.00, indicating a potential upside of 199.40%. Given New Horizon Aircraft’s stronger consensus rating and higher possible upside, equities research analysts clearly believe New Horizon Aircraft is more favorable than Signature Aviation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
New Horizon Aircraft	N/A	-71.96%	211.11%
Signature Aviation	N/A	N/A	N/A

Summary

New Horizon Aircraft beats Signature Aviation on 8 of the 11 factors compared between the two stocks.

About New Horizon Aircraft

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

About Signature Aviation

Signature Aviation Plc manufactures aircraft parts and provides flight support services. The company was founded by William Fenton and Walter Wilson Cobbett in 1879 and is headquartered in London, the United Kingdom.