Virgin Galactic (NYSE:SPCE) versus Verra Mobility (NASDAQ:VRRM) Critical Analysis

Virgin Galactic (NYSE:SPCE) and Verra Mobility (NASDAQ:VRRM) are both aerospace companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Institutional and Insider Ownership

23.5% of Virgin Galactic shares are owned by institutional investors. Comparatively, 89.8% of Verra Mobility shares are owned by institutional investors. 14.3% of Virgin Galactic shares are owned by company insiders. Comparatively, 0.9% of Verra Mobility shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Virgin Galactic and Verra Mobility’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Virgin Galactic N/A -55.55% -43.37%
Verra Mobility 4.17% 26.82% 6.54%

Earnings and Valuation

This table compares Virgin Galactic and Verra Mobility’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Virgin Galactic $3.78 million 2,921.84 -$210.93 million ($1.09) -43.24
Verra Mobility $416.72 million 5.55 $33.34 million $0.65 21.92

Verra Mobility has higher revenue and earnings than Virgin Galactic. Virgin Galactic is trading at a lower price-to-earnings ratio than Verra Mobility, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Virgin Galactic and Verra Mobility, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Virgin Galactic 0 4 5 0 2.56
Verra Mobility 0 0 5 0 3.00

Virgin Galactic presently has a consensus price target of $29.88, indicating a potential downside of 36.61%. Verra Mobility has a consensus price target of $13.90, indicating a potential downside of 2.46%. Given Verra Mobility’s stronger consensus rating and higher possible upside, analysts plainly believe Verra Mobility is more favorable than Virgin Galactic.

Risk & Volatility

Virgin Galactic has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Verra Mobility has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Summary

Verra Mobility beats Virgin Galactic on 11 of the 13 factors compared between the two stocks.

About Virgin Galactic

Virgin Galactic Holdings, Inc., an integrated aerospace company, develops human spaceflight for private individuals and researchers in the United States. It also manufactures air and space vehicles. The company's spaceship operations include commercial human spaceflight, flying commercial research, and development payloads into space. In addition, it engages in the design and development, manufacturing, ground and flight testing, and post-flight maintenance of spaceflight vehicles. Virgin Galactic Holdings, Inc. was founded in 2017 and is headquartered in Las Cruces, New Mexico.

About Verra Mobility

Verra Mobility Corporation provides smart mobility technology solutions and services in the United States, Canada, and Europe. It operates through two segments, Government Solutions and Commercial Services. The Government Solutions segment offers automated safety solutions, including services and technologies that enable photo enforcement through road safety camera programs, which detects and process traffic violations related to red light, speed, school bus, and city bus lanes. This segment serves municipalities, counties, school districts, and law enforcement agencies. The Commercial Services segment provides automated toll and violations management, and title and registration solutions to rental car companies, fleet management companies, and other large fleet owners. The company is headquartered in Mesa, Arizona.

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