Analyzing Embraer (NYSE:ERJ) & Pono Capital (NASDAQ:PONO)

Embraer (NYSE:ERJ – Get Rating) and Pono Capital (NASDAQ:PONO – Get Rating) are both aerospace companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Institutional and Insider Ownership

37.9% of Embraer shares are held by institutional investors. Comparatively, 74.1% of Pono Capital shares are held by institutional investors. 1.0% of Embraer shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Embraer has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Pono Capital has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500.

Profitability

This table compares Embraer and Pono Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embraer	0.78%	1.02%	0.29%
Pono Capital	N/A	N/A	N/A

Earnings & Valuation

This table compares Embraer and Pono Capital’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embraer	$4.54 billion	0.61	-$185.40 million	$0.19	79.95
Pono Capital	N/A	N/A	$4.59 million	N/A	N/A

Pono Capital has lower revenue, but higher earnings than Embraer.

Analyst Recommendations

This is a summary of current recommendations and price targets for Embraer and Pono Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embraer	0	1	4	0	2.80
Pono Capital	0	0	0	0	N/A

Embraer currently has a consensus price target of $16.85, suggesting a potential upside of 10.93%. Given Embraer’s higher probable upside, research analysts clearly believe Embraer is more favorable than Pono Capital.

Summary

Embraer beats Pono Capital on 8 of the 10 factors compared between the two stocks.

About Embraer

(Get Rating)

Embraer SA engages in the design, manufacture, and sale of aircraft and its parts for commercial, defense, and executive aviation sectors. It operates through the following segments: Commercial Aviation, Defense and Security, Executive Jet Business, Service & Support and Others. The Commercial Aviation segment is involved in the development, production, and sale of commercial jets; and the provision of support services to regional aviation and aircraft leasing. The Defense and Security segment engages in research, development, production, modification, and support for defense and security aircrafts, as well as other integrated products and solutions including satellites and information and communication systems. The Executive Jet Business segment deals with the development, manufacture, and sale of executive jets. The Service & Support segment provides after-service solutions and support to its customers through a comprehensive portfolio of innovative and competitive solutions to ensure operational efficiency of products manufactured by Embraer and by other aircraft manufacturers, extending the useful life of commercial, executive and defense aircraft. The Others segment refers to

About Pono Capital

(Get Rating)

Pono Capital Corp. focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to identify business opportunities in the field of enterprise security and operations applications, cloud-based content and digital streaming services, drone technology and service, artificial intelligence, consumer healthcare and wellness, biomedical technology, entertainment/gaming, distance learning, and online retail and e-sports. The company was incorporated in 2021 and is based in Honolulu, Hawaii.