Analyzing Redwire (NYSE:RDW) & QinetiQ Group (OTCMKTS:QNTQF)

Redwire (NYSE:RDW) and QinetiQ Group (OTCMKTS:QNTQF) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Profitability

This table compares Redwire and QinetiQ Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redwire	-19.16%	-530.39%	-11.49%
QinetiQ Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for Redwire and QinetiQ Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	0	0	3	0	3.00
QinetiQ Group	0	0	0	0	N/A

Redwire presently has a consensus price target of $7.50, indicating a potential upside of 202.42%. Given Redwire’s higher probable upside, analysts plainly believe Redwire is more favorable than QinetiQ Group.

Insider and Institutional Ownership

9.1% of Redwire shares are held by institutional investors. Comparatively, 61.6% of QinetiQ Group shares are held by institutional investors. 3.5% of Redwire shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Redwire and QinetiQ Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwire	$234.02 million	0.68	-$130.62 million	($0.91)	-2.70
QinetiQ Group	N/A	N/A	N/A	($0.06)	-61.66

QinetiQ Group has lower revenue, but higher earnings than Redwire. QinetiQ Group is trading at a lower price-to-earnings ratio than Redwire, indicating that it is currently the more affordable of the two stocks.

About Redwire

Redwire Corporation operates as a space infrastructure company in the United States, Netherlands, Luxemburg, the United Kingdom, Italy, Germany, Spain, South Korea, Poland, and internationally. It provides critical space solutions and reliability components for solar power generation, in-space 3D printing and manufacturing, avionics, critical components, sensors, digital engineering, and space-based biotechnology. The company's product portfolio includes antennas, boom deployers, data modules, deorbit devices, deployable radiator, engineering services and solutions, heat pipes, in-space manufacturing, power solutions, robotics software, solar arrays, space cameras, space-based research, star tracker, sensors and shades, and thermal energy storage. In addition, it offers space domain awareness and resiliency including sensor systems for on-orbit monitoring, advanced modeling & simulation, cyber resiliency, asset hardening, robotics, and full satellite solutions; and digitally engaged spacecraft technology includes software and hardware-in-the-loop configurations, to enable next generation space architectures and solutions, such as advanced artificial intelligence, machine learning, and cyber technologies. It also provides low-earth orbit commercialization, which includes in-space additive manufacturing, space-based biotechnology applications, space plant and animal science, in-space advanced material manufacturing and support of human exploration, habitation, and commercial activities in space. Redwire Corporation is headquartered in Jacksonville, Florida.

About QinetiQ Group

QinetiQ Group plc operates as a science and engineering company primarily in the defense, security, and infrastructure markets in the United Kingdom, the United States, Australia, Europe, and internationally. The company operates through EMEA Services and Global Products segments. It offers advanced materials and manufacturing products; artificial intelligence, analytics, and advanced computing technologies; cyber and electromagnetic technologies; human protection and performance systems; novel systems, and weapons and effects; platform and system design and assessment products; power sources, and energy storage and distribution products; robotics and autonomy services; secure communications and navigation systems; and sensing, processing, and data fusion systems. The company also provides testing and evaluation, training and simulation, and cyber and digital resilience services, as well as unmanned air, land, and surface targets. It serves defense, aviation and aerospace, energy and utility, financial services, government, law enforcement, marine, space, and telecommunications sectors. The company was founded in 2001 and is based in Farnborough, the United Kingdom.