Comparing Heico (NYSE:HEI.A) and EHang (NASDAQ:EH)

Heico (NYSE:HEI.A) and EHang (NASDAQ:EH) are both aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

59.0% of Heico shares are owned by institutional investors. Comparatively, 94.0% of EHang shares are owned by institutional investors. 9.8% of Heico shares are owned by insiders. Comparatively, 39.6% of EHang shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Heico and EHang, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heico	0	1	0	1	3.00
EHang	4	2	2	0	1.75

EHang has a consensus price target of $7.18, suggesting a potential upside of 34.71%. Given EHang’s higher probable upside, analysts clearly believe EHang is more favorable than Heico.

Valuation & Earnings

This table compares Heico and EHang”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heico	$4.49 billion	7.71	$690.39 million	$5.60	44.19
EHang	$72.86 million	5.50	-$39.47 million	($0.54)	-9.87

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

Volatility and Risk

Heico has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, EHang has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Profitability

This table compares Heico and EHang’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heico	16.08%	17.52%	8.86%
EHang	-54.89%	-25.77%	-13.88%

Summary

Heico beats EHang on 10 of the 15 factors compared between the two stocks.

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.

About EHang

EHang Holdings Limited operates as an autonomous aerial vehicle (AAV) technology platform company in the People's Republic of China, East Asia, West Asia, Europe, and internationally. It designs, develops, manufactures, sells, and operates AAVs, as well as their supporting systems and infrastructure for various industries and applications, including passenger transportation, logistics, smart city management, and aerial media solutions. The company was incorporated in 2014 and is headquartered in Guangzhou, the People's Republic of China.