Astronics (NASDAQ:ATRO – Get Free Report) and Heico (NYSE:HEI.A – Get Free Report) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.
Profitability
This table compares Astronics and Heico’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Astronics | 3.41% | 39.95% | 11.66% |
| Heico | 15.38% | 16.57% | 8.34% |
Earnings and Valuation
This table compares Astronics and Heico”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Astronics | $862.13 million | 3.24 | $29.36 million | $0.77 | 101.64 |
| Heico | $4.49 billion | 6.76 | $690.39 million | $5.06 | 42.95 |
Heico has higher revenue and earnings than Astronics. Heico is trading at a lower price-to-earnings ratio than Astronics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Astronics has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Heico has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
Insider & Institutional Ownership
56.7% of Astronics shares are owned by institutional investors. Comparatively, 59.0% of Heico shares are owned by institutional investors. 8.9% of Astronics shares are owned by company insiders. Comparatively, 9.8% of Heico shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Astronics and Heico, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Astronics | 1 | 0 | 2 | 3 | 3.17 |
| Heico | 0 | 1 | 0 | 1 | 3.00 |
Astronics presently has a consensus price target of $77.33, indicating a potential downside of 1.18%. Given Astronics’ stronger consensus rating and higher possible upside, research analysts clearly believe Astronics is more favorable than Heico.
Summary
Astronics beats Heico on 8 of the 15 factors compared between the two stocks.
About Astronics
Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. The company operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and mass transit industries, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. Astronics Corporation was incorporated in 1968 and is headquartered in East Aurora, New York.
About Heico
HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. The company's Flight Support Group segment provides jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components. This segment also distributes hydraulic, pneumatic, structural, interconnect, mechanical, and electro-mechanical components for the commercial, regional, and general aviation markets; and offers repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and flight surfaces of commercial aircraft, as well as for avionics and navigation systems, subcomponents, and other instruments utilized on military aircraft. Its Electronic Technologies Group segment provides electro-optical infrared simulation and test equipment; electro-optical laser products; electro-optical, microwave, and other power equipment; electromagnetic and radio interference shielding and suppression filters; high-speed interface products; high voltage interconnection devices; high voltage advanced power electronics; power conversion products; and underwater locator beacons and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; three-dimensional microelectronic and stacked memory products; harsh environment connectivity products and custom molded cable assemblies; radio frequency and microwave amplifiers, transmitters, and receivers; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems; and nuclear radiation detectors. The company serves customers primarily in the aviation, defense, space, medical, telecommunications, and electronics industries. HEICO Corporation was founded in 1957 and is headquartered in Hollywood, Florida.
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