Contrasting New Horizon Aircraft (NASDAQ:HOVR) and Lilium (NASDAQ:LILM)

Lilium (NASDAQ:LILM) and New Horizon Aircraft (NASDAQ:HOVR) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Lilium and New Horizon Aircraft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lilium	0	1	3	0	2.75
New Horizon Aircraft	0	0	0	0	N/A

Lilium currently has a consensus price target of $2.53, indicating a potential upside of 168.93%. Given Lilium’s higher possible upside, analysts plainly believe Lilium is more favorable than New Horizon Aircraft.

Insider and Institutional Ownership

8.3% of Lilium shares are held by institutional investors. Comparatively, 66.0% of New Horizon Aircraft shares are held by institutional investors. 33.1% of Lilium 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 Lilium and New Horizon Aircraft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lilium	N/A	N/A	N/A
New Horizon Aircraft	N/A	-137.31%	7.13%

Earnings and Valuation

This table compares Lilium and New Horizon Aircraft’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lilium	$60,000.00	8,240.10	-$421.14 million	N/A	N/A
New Horizon Aircraft	N/A	N/A	$8.61 million	N/A	N/A

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

Summary

Lilium beats New Horizon Aircraft on 5 of the 8 factors compared between the two stocks.

About Lilium

Lilium N.V., a transportation company, engages in the research and development of electric vertical takeoff and landing aircrafts and jet for use in high-speed air transport system for people and goods. It also provides aircraft manufacturer services, including training, maintenance operations, material and battery management, global distribution, flight operations support, ground service equipment, and digital solutions. Lilium N.V. was incorporated in 2015 and is headquartered in Wessling, Germany.

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.