Critical Review: EVE (NYSE:EVEX) vs. Vertical Aerospace (NYSE:EVTL)

EVE (NYSE:EVEX – Get Rating) and Vertical Aerospace (NYSE:EVTL – Get Rating) are both small-cap aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares EVE and Vertical Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EVE	N/A	-24.66%	3.45%
Vertical Aerospace	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for EVE and Vertical Aerospace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVE	0	2	1	0	2.33
Vertical Aerospace	1	2	0	0	1.67

EVE presently has a consensus price target of $7.30, suggesting a potential downside of 4.20%. Vertical Aerospace has a consensus price target of $8.00, suggesting a potential downside of 2.32%. Given Vertical Aerospace’s higher probable upside, analysts clearly believe Vertical Aerospace is more favorable than EVE.

Volatility and Risk

EVE has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Vertical Aerospace has a beta of 3.19, meaning that its stock price is 219% more volatile than the S&P 500.

Valuation & Earnings

This table compares EVE and Vertical Aerospace’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVE	N/A	N/A	$14.52 million	N/A	N/A
Vertical Aerospace	$180,000.00	9,515.64	-$337.21 million	N/A	N/A

EVE has higher earnings, but lower revenue than Vertical Aerospace.

Institutional and Insider Ownership

74.6% of EVE shares are held by institutional investors. Comparatively, 77.6% of Vertical Aerospace shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Vertical Aerospace beats EVE on 5 of the 9 factors compared between the two stocks.

About EVE

(Get Rating)

Eve Holding, Inc. develops urban air mobility solutions. It is involved in the design and production of eVTOLs; provision of eVTOL service and support capabilities, including material services, maintenance, technical support, training, ground handling, and data services; and development of urban air traffic management systems. The company is based in Melbourne, Florida.

About Vertical Aerospace

(Get Rating)

Vertical Aerospace Ltd. engages in designing, manufacturing, and selling electric aircraft. It offers VX4, an electric vertical take-off and landing vehicle. The company was founded in 2016 and is headquartered in Bristol, the United Kingdom.