Financial Analysis: Innovative Solutions & Support (NASDAQ:ISSC) and PROS (NASDAQ:PRO)

Innovative Solutions & Support (NASDAQ:ISSC) and PROS (NYSE:PRO) are both aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Insider & Institutional Ownership

23.9% of Innovative Solutions & Support shares are held by institutional investors. Comparatively, 94.9% of PROS shares are held by institutional investors. 27.7% of Innovative Solutions & Support shares are held by company insiders. Comparatively, 13.7% of PROS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Innovative Solutions & Support and PROS’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Innovative Solutions & Support $13.85 million 6.28 -$3.65 million N/A N/A
PROS $197.02 million 14.78 -$64.24 million ($1.09) -66.44

Innovative Solutions & Support has higher earnings, but lower revenue than PROS.

Volatility & Risk

Innovative Solutions & Support has a beta of -0.3, meaning that its stock price is 130% less volatile than the S&P 500. Comparatively, PROS has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Profitability

This table compares Innovative Solutions & Support and PROS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Innovative Solutions & Support 2.67% 1.27% 1.16%
PROS -28.41% -57.99% -7.78%

Analyst Ratings

This is a summary of current ratings and price targets for Innovative Solutions & Support and PROS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innovative Solutions & Support 0 0 0 0 N/A
PROS 0 2 9 0 2.82

PROS has a consensus target price of $70.20, suggesting a potential downside of 3.07%. Given PROS’s higher possible upside, analysts plainly believe PROS is more favorable than Innovative Solutions & Support.

About Innovative Solutions & Support

Innovative Solutions and Support, Inc., a systems integrator, designs, manufactures, sells, and services flight guidance and cockpit display systems. It offers flat panel display systems that could replicate the display of analog or digital displays on one screen and could replace existing displays in legacy aircraft, as well as used for security monitoring on-board aircraft and as tactical workstations on military aircraft; flight management systems that complement the IS&S flat panel display system upgrade for commercial air transport aircraft; and integrated standby units, which incorporate the measurement and display of attitude, altitude, airspeed, and navigation data into a single standby/backup navigation instrument for military, commercial air transport, and corporate/general aviation applications. The company also provides digital air data computers, which calculate various air data parameters, such as altitude, airspeed, vertical speed, angle of attack, and other information derived from the measure of air pressure; integrated air data computers and display units that calculate and convey air data information; altitude displays, which convey aircraft altitude measurements; airspeed displays, which convey various types of airspeed measurements; and altitude alerters that allow pilots to select a desired cruising altitude and provide warnings to pilots when an unacceptable deviation occurs. In addition, it offers engine and fuel displays that convey information related to fuel and oil levels, and engine activity, such as oil and hydraulic pressure and temperature; integrated global navigation systems; and utilities management systems. The company serves commercial air transport carriers and corporate/general aviation companies, Department of Defense and its commercial contractors, aircraft operators, aircraft modification centers, foreign militaries, and original equipment manufacturers. The company was founded in 1988 and is based in Exton, Pennsylvania.

About PROS

PROS Holdings, Inc. offers artificial intelligence (AI) solutions that power commerce in the digital economy worldwide. The company's solutions enable buying experiences for business-to-business (B2B) and business-to-consumer companies. It delivers its cloud-based solutions through the Internet as a Service on a subscription basis. The company offers solutions for selling improvement, including PROS Smart CPQ that automates the quoting process by enabling sales teams, partners, and end customers on e-commerce platforms; and PROS Opportunity Detection solutions, which enhances sales productivity, accelerates quota attainment, and delivers data-driven product recommendations. It also provides PROS pricing solutions comprising PROS Control, a platform for price measurement, coordination, and strategy; and PROS Guidance, a prescriptive price guidance solution. In addition, the company provides PROS airline revenue optimization solutions consisting of PROS Airline Revenue Management, PROS Airline Real-Time Dynamic Pricing, and PROS Airline Group Sales for enterprises in the travel industry, including the airline, hotel, and cruise. Further, it offers Airline e-commerce suite of products, such as PROS Airline Shopping and PROS Airline Merchandising that provide airlines with shopping and merchandising capabilities. Additionally, the company offers professional services consisting of implementation and configuration, consulting, and training; and maintenance and support services. It sells its software solutions to customers in various industries, including automotive and industrial, B2B services, cargo, chemicals and energy, consumer goods, insurance, food and beverage, healthcare, high tech, and travel. The company markets and sells its software solutions primarily through its direct global sales force, as well as indirectly through go-to-market partners, resellers, and systems integrators. PROS Holdings, Inc. was founded in 1985 and is headquartered in Houston, Texas.

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