Critical Analysis: Park Aerospace (NYSE:PKE) & Ondas (NASDAQ:ONDS)

Park Aerospace (NYSE:PKE) and Ondas (NASDAQ:ONDS) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for Park Aerospace and Ondas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park Aerospace	0	0	4	0	3.00
Ondas	1	1	8	0	2.70

Park Aerospace currently has a consensus target price of $42.50, suggesting a potential upside of 40.17%. Ondas has a consensus target price of $17.18, suggesting a potential upside of 132.72%. Given Ondas’ higher probable upside, analysts plainly believe Ondas is more favorable than Park Aerospace.

Valuation & Earnings

This table compares Park Aerospace and Ondas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park Aerospace	$73.30 million	9.00	$11.27 million	$0.63	48.13
Ondas	$50.73 million	83.15	-$132.02 million	($0.07)	-105.43

Park Aerospace has higher revenue and earnings than Ondas. Ondas is trading at a lower price-to-earnings ratio than Park Aerospace, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

77.8% of Park Aerospace shares are held by institutional investors. Comparatively, 37.7% of Ondas shares are held by institutional investors. 7.1% of Park Aerospace shares are held by company insiders. Comparatively, 1.7% of Ondas shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Park Aerospace has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Ondas has a beta of 2.74, indicating that its share price is 174% more volatile than the S&P 500.

Profitability

This table compares Park Aerospace and Ondas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park Aerospace	16.70%	10.75%	9.77%
Ondas	93.55%	-14.20%	-7.15%

Summary

Park Aerospace beats Ondas on 9 of the 14 factors compared between the two stocks.

About Park Aerospace

Park Aerospace Corp., an aerospace company, develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the aerospace market in North America, Asia, and Europe. It offers advanced composite materials, including film adhesives and lightning strike protection materials that are used to produce primary and secondary structures for jet engines, large and regional transport aircrafts, military aircrafts, unmanned aerial vehicles, business jets, general aviation aircrafts, and rotary wing aircrafts. The company also provides specialty ablative materials for rocket motors and nozzles; and specially designed materials for radome applications. In addition, it designs and fabricates composite parts, structures and assemblies, and low volume tooling for the aerospace industry. The company was formerly known as Park Electrochemical Corp. and changed its name to Park Aerospace Corp. in July 2019. Park Aerospace Corp. was incorporated in 1954 and is based in Westbury, New York.

About Ondas

Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. It operates in two segments, Ondas Networks and Ondas Autonomous Systems. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Optimus, an AI-powered drone with imaging payloads; the Airbase, a ruggedized weatherproof base station for housing, data processing, and cloud transfer; Insightful, a secure web portal and API, which enables remote interaction with the system, data, and resulting analytics anywhere in the world; and the Raider, a counter-drone system for security and the protection of critical infrastructure, assets, and people from the threat of hostile drones. It serves users in rail, energy, mining, agriculture, public safety, critical infrastructure, and government markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.