Critical Analysis: Alabama Aircraft Industries (OTCMKTS:AAIIQ) versus Joby Aviation (NYSE:JOBY)

Joby Aviation (NYSE:JOBY) and Alabama Aircraft Industries (OTCMKTS:AAIIQ) are both transportation 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.

Earnings & Valuation

This table compares Joby Aviation and Alabama Aircraft Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Joby Aviation	$1.03 million	4,649.96	-$513.05 million	($0.70)	-8.94
Alabama Aircraft Industries	N/A	N/A	N/A	N/A	N/A

Alabama Aircraft Industries has lower revenue, but higher earnings than Joby Aviation.

Institutional and Insider Ownership

45.5% of Joby Aviation shares are held by institutional investors. 32.4% of Joby Aviation shares are held by insiders. Comparatively, 38.0% of Alabama Aircraft Industries 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.

Profitability

This table compares Joby Aviation and Alabama Aircraft Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Joby Aviation	-42,844.57%	-51.76%	-42.62%
Alabama Aircraft Industries	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Joby Aviation and Alabama Aircraft Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joby Aviation	0	1	4	0	2.80
Alabama Aircraft Industries	0	0	0	0	0.00

Joby Aviation currently has a consensus price target of $8.35, suggesting a potential upside of 33.39%. Given Joby Aviation’s stronger consensus rating and higher probable upside, research analysts clearly believe Joby Aviation is more favorable than Alabama Aircraft Industries.

Summary

Joby Aviation beats Alabama Aircraft Industries on 5 of the 9 factors compared between the two stocks.

About Joby Aviation

Joby Aviation, Inc., a vertically integrated air mobility company, engages in building an electric vertical takeoff and landing aircraft optimized to deliver air transportation as a service. The company intends to build an aerial ridesharing service, as well as developing an application-based platform that will enable consumers to book rides. Joby Aviation, Inc. was founded in 2009 and is headquartered in Santa Cruz, California.

About Alabama Aircraft Industries

Alabama Aircraft Industries, Inc provides aircraft maintenance and modification services to the United States government, foreign governments, and military customers. Its services include maintenance and modification of military transport, tanker, and petrol aircraft airframes; and aircraft maintenance and modification services, such as complete airframe maintenance and repair, and custom air frame design and modification. The company’s services also comprise scheduled and unscheduled maintenance; interior refurbishment and reconfiguration; lavatory, galley, airstair, and auxiliary fuel tank installations; aging aircraft inspection; structural and accident damage repair; manufacturing and parts fabrication; composite repair; service bulletin and AD compliance; component repair and overhaul; EPA approved stripping and painting; CPCP; non-destructive testing; avionics upgrades and installation; and FAA repair station RJ1R454K. Its principal services performed under military contracts are programmed depot maintenance, aircraft modifications, aircraft stripping and painting, rewiring, parts fabrication, engineering support services, system integration of component upgrades, and modification of fixed wing aircrafts. In addition, the company offers airframe corrosion prevention and control, rewiring, and component overhauls, as well as structural, avionics, and other systems modification services. It provides its services directly as a prime contractor or indirectly as a sub- contractor. The company was formerly known as Pemco Aviation Group, Inc. and changed its name to Alabama Aircraft Industries Inc. in September 2007. Alabama Aircraft Industries, Inc was founded in 1983 and is based in Birmingham, Alabama. On Nov 3, 2011, the voluntary petition of Alabama Aircraft Industries, Inc., along with its affiliates, for reorganization under Ch 11 was converted to Ch 7. It had filed for Chapter 11 bankruptcy on Feb 15, 2011.