Down 95%, will this FTSE household name explode like the Rolls-Royce share price?

Bubbles Rolls-Royce (LSE: RR) share price recovery shows how an ailing company can rise if conditions are right.

I FTSE 100 the aircraft engine maker's shares have fallen more than 80% due to the bribery scandal, the Covid shutdown, and other negatives. Investors who saw the opportunity over the past two years have made an impressive 518% return.

The latecomers have seen their shares soar by around 150% in the space of 12 months but with Rolls-Royce shares now looking at a net worth of 36.19 times earnings, the glory days appear to be over.

On August 6, JP Morgan increased its price for Rolls-Royce to 535p. But with shares trading at 496.8p, that's 7.7% growth from here.

FTSE 100 star

The recovery has started but that didn't stop me putting my hand in at 455p during the recent market. I'm up about 10% since then but it's neither here nor there. I have been watching for at least 10 years.

There are risks, of course. CEO Tufan Erginbilgiç raised the alarm about supply chain problems. Its proposed fleet of small nuclear devices is awaiting government approval. A recession in the US could hit flight hours. If Erginbilgiç lowers the target, the selloff could be brutal. I will hold on to what I have and hunt for growth opportunities elsewhere.

I wonder if I have found another one from the James Bond sick car maker Aston Martin Lagonda (LSE: AML). I have been waiting FTSE 250 stock to rework for years. Instead, it just seems to backfire. At speed.

Aston Martin's share price has fallen a staggering 95.83% in five years. Even Rolls-Royce didn't fall that far. Over one year, it decreased by 55.85%. Talk about a burning platform.

However, the board revealed its positive half-year results on 24 July. Although retail prices fell 32% to 1,998 units, that was largely expected as the company transitions to the Vantage luxury supercar and upgraded DBX707 models.

The Aston Martin Lagonda is very dangerous

Average sales prices accelerated by 29% to £274,000, driven by Special Sales and enhanced personal options. And while revenue fell 11% to £603m, the group still posted a profit of £233m, down 1% year-on-year.

The board remains confident that it will achieve full-year targets with volumes, profits, and margins rising from a strong recovery in the second half.

I don't know whether to be happy that Aston Martin successfully funded the first quarter, or disappointed that it should have done so. Again.

Total debt stood at £1.19bn on 30 June, in line with today's market average of £1.2bn. Wow. The debt-to-equity ratio is high at 1.79. On the other hand, that is down from 3.86 in June 2022. Let's see what the chart says.

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The board must invest £2bn between 2023 and 2027 to drive growth and the switch to electrification (where you're trailing badly). Assignments may last for years.

Traders are optimistic, however, setting a 12-month price target of 253.2p, up 69.9% from today's 150.6p. I really like that.

The former CEO of Rolls-Royce, Warren East, had largely steadied the ship before Erginbilgiç took over. In contrast, Aston Martin remains steadfast. However, I am still tempted to jump ship. I would like to miss it when it takes off. I won't know if I'm brave enough until I click the 'buy' button.