Reviewing Optex Systems (NASDAQ:OPXS) & National Presto Industries (NYSE:NPK)

Optex Systems (NASDAQ:OPXS) and National Presto Industries (NYSE:NPK) are both small-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Insider & Institutional Ownership

19.1% of Optex Systems shares are held by institutional investors. Comparatively, 58.6% of National Presto Industries shares are held by institutional investors. 27.7% of Optex Systems shares are held by company insiders. Comparatively, 26.0% of National Presto Industries 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.

Valuation & Earnings

This table compares Optex Systems and National Presto Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Optex Systems	$41.34 million	1.38	$5.15 million	$0.55	14.91
National Presto Industries	$503.52 million	2.02	$33.08 million	$5.98	23.88

National Presto Industries has higher revenue and earnings than Optex Systems. Optex Systems is trading at a lower price-to-earnings ratio than National Presto Industries, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Optex Systems has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, National Presto Industries has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Optex Systems and National Presto Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Optex Systems	0	2	0	1	2.67
National Presto Industries	0	1	1	0	2.50

National Presto Industries has a consensus price target of $162.00, indicating a potential upside of 13.45%. Given National Presto Industries’ higher probable upside, analysts clearly believe National Presto Industries is more favorable than Optex Systems.

Profitability

This table compares Optex Systems and National Presto Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Optex Systems	9.77%	17.57%	14.65%
National Presto Industries	7.86%	10.83%	8.68%

Summary

National Presto Industries beats Optex Systems on 8 of the 15 factors compared between the two stocks.

About Optex Systems

Optex Systems Holdings, Inc manufactures and sells optical sighting systems and assemblies primarily for the U.S. department of defense, foreign military applications, and commercial markets in the United States. It offers periscopes, such as laser and non-laser protected plastic and glass periscopes, electronic M17 day/thermal periscopes, and vision blocks; sighting systems, including back up sights, digital day and night sighting systems, M36 thermal periscope, unity mirrors, optical weapon system support and maintenance, commander weapon station sights, and sight assembly refurbishments; howitzers comprising M137 telescope, M187 mount, M119 aiming device, XM10 and aiming circles; and applied optics center consisting of laser interference filter, optical assemblies, laser filter units, day windows, and specialty thin film coatings, as well as other products, such as muzzle reference systems, binoculars, collimators, optical lenses and elements, and windows. The company also provides various periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Its products are installed on various types of U.S. military land vehicles, such as the Abrams, Bradley, and Stryker families of fighting vehicles, as well as light armored and armored security vehicles. The company offers its products directly to the federal government, prime contractors, and foreign governments. Optex Systems Holdings, Inc was founded in 1987 and is headquartered in Richardson, Texas. Optex Systems Holdings, Inc is a subsidiary of Sileas Corporation.

About National Presto Industries

National Presto Industries, Inc. provides housewares and small appliance, defense, and safety products in North America. The company’s Housewares/Small Appliance segment designs, markets, and distributes housewares and small electrical appliances, including pressure cookers and canners; heat control line of skillets, griddles, woks, and multi-purpose cookers; slow cookers; deep fryers; air fryers; waffle makers; pizza ovens; slicer/shredders; electric heaters; hot air, oil, and microwave corn poppers; dehydrators; vacuum sealers; rice cookers; microwave bacon cookers; egg cookers; coffeemakers and coffeemaker accessories; electric knife sharpeners; and timers under the Presto Control Master brand. This segment sells its products directly to retailers, as well as through independent distributors. Its Defense segment manufactures and sells 40mm ammunition, precision mechanical and electro-mechanical products, medium caliber cartridge cases; and metal parts; and detonators, booster pellets, release cartridges, lead azide, and other military energetic devices and materials. This segment primarily serves the United States Department of Defense (DOD) and DOD prime contractors. The company’s Safety segment patents machine learning, digital sensors, and cloud-based technology to monitor freezers and refrigerators that detects and alerts users to potential safety issues around pharmaceuticals and food. National Presto Industries, Inc. was founded in 1905 and is based in Eau Claire, Wisconsin.