Head to Head Analysis: Astronics (OTCMKTS:ATROB) and Optex Systems (NASDAQ:OPXS)

Optex Systems (NASDAQ:OPXS) and Astronics (OTCMKTS:ATROB) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Risk and Volatility

Optex Systems has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Astronics has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Optex Systems and Astronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Optex Systems	0	2	0	1	2.67
Astronics	0	1	0	0	2.00

Profitability

This table compares Optex Systems and Astronics’ 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%
Astronics	14.21%	73.50%	16.59%

Institutional & Insider Ownership

19.1% of Optex Systems shares are held by institutional investors. 27.7% of Optex Systems shares are held by insiders. Comparatively, 16.0% of Astronics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Optex Systems and Astronics”s top-line 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	1.43	$5.15 million	$0.55	15.49
Astronics	$862.13 million	2.82	$29.36 million	$3.04	18.57

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

Summary

Astronics beats Optex Systems on 9 of the 13 factors compared between the two stocks.

About Optex Systems

Optex Systems Holdings, Inc. designs, manufactures and sells optical sighting systems and precision optical assemblies for defense and commercial markets. Its products are used in military vehicles, small arms and other applications that require specialized optical equipment. The company’s product range includes periscopes, rifle scopes, binoculars, night-vision equipment, laser-protection filters and related optical components. Optex supplies military and government customers, as well as defense contractors and other commercial customers.

About Astronics

Astronics Corporation develops and manufactures technologies for the aerospace, defense and other mission-critical markets. Its aerospace products include aircraft lighting and safety systems, electrical power generation and distribution equipment, cabin electronics, connectivity solutions and aircraft structures. The company also provides automated test systems and related equipment used by aerospace and defense organizations and other manufacturers. Astronics serves customers in North America and internationally, including commercial aviation, business aviation and military markets.