Vertical Aerospace (NYSE:EVTL) and New Horizon Aircraft (NASDAQ:HOVR) Financial Analysis

New Horizon Aircraft (NASDAQ:HOVR) and Vertical Aerospace (NYSE:EVTL) are both small-cap aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
New Horizon Aircraft	N/A	-29.17%	3.03%
Vertical Aerospace	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for New Horizon Aircraft and Vertical Aerospace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Horizon Aircraft	0	0	0	0	N/A
Vertical Aerospace	0	0	1	0	3.00

Vertical Aerospace has a consensus price target of $1.50, suggesting a potential upside of 91.77%. Given Vertical Aerospace’s higher possible upside, analysts plainly believe Vertical Aerospace is more favorable than New Horizon Aircraft.

Insider & Institutional Ownership

66.0% of New Horizon Aircraft shares are owned by institutional investors. Comparatively, 81.2% of Vertical Aerospace shares are owned by institutional investors. 74.8% of Vertical Aerospace shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares New Horizon Aircraft 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
New Horizon Aircraft	N/A	N/A	$8.61 million	N/A	N/A
Vertical Aerospace	$180,000.00	961.45	-$74.57 million	N/A	N/A

New Horizon Aircraft has higher earnings, but lower revenue than Vertical Aerospace.

Summary

Vertical Aerospace beats New Horizon Aircraft on 6 of the 8 factors compared between the two stocks.

About New Horizon Aircraft

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

About Vertical Aerospace

Vertical Aerospace Ltd., an aerospace and technology company, engages in designing, manufacturing, and selling zero operating emission electric vertical takeoff and landing (eVTOL) aircraft for use in the advanced air mobility in the United Kingdom. It offers VX4, an eVTOL aircraft. The company was founded in 2016 and is headquartered in Bristol, the United Kingdom.