Heico (HEI.A) versus Heico (HEI) Critical Review
Heico (NYSE:HEI.A) and Heico (NYSE:HEI) are both aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Insider & Institutional Ownership
47.5% of Heico shares are owned by institutional investors. Comparatively, 26.6% of Heico shares are owned by institutional investors. 15.0% of Heico shares are owned by insiders. Comparatively, 9.9% of Heico shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Heico and Heico’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Heico has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Heico has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Heico and Heico, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Heico has a consensus price target of $88.69, suggesting a potential upside of 0.80%. Given Heico’s higher probable upside, analysts clearly believe Heico is more favorable than Heico.
Heico pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Heico pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. Heico pays out 8.9% of its earnings in the form of a dividend. Heico has increased its dividend for 8 consecutive years.
Earnings & Valuation
This table compares Heico and Heico’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Heico||$1.52 billion||6.12||$185.99 million||N/A||N/A|
|Heico||$1.52 billion||7.67||$185.98 million||$1.35||65.17|
Heico beats Heico on 8 of the 13 factors compared between the two stocks.
HEICO Corporation manufactures Federal Aviation Administration (FAA)-approved jet engine and aircraft component replacement parts, other than the original equipment manufacturers (OEMs) and their subcontractors. The Company also manufactures various types of electronic equipment for the aviation, medical, telecommunications and electronics industries. It operates through two segments: Flight Support Group (FSG) and Electronic Technologies Group (ETG). The FSG segment consists of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their collective subsidiaries. The FSG segment designs and manufactures jet engine and aircraft component replacement parts. The ETG segment consists of HEICO Electronic Technologies Corp. and its subsidiaries. The ETG segment designs and produces mission-critical subcomponents for various markets, which are utilized in larger systems, including targeting, tracking, identification, testing, communications, telecom and computer systems.
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 for aerospace and industrial original equipment manufacturers, and the United States government. This segment also distributes hydraulic, pneumatic, structural, 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 airlines, 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; high-speed interface products; high voltage interconnection devices; high voltage advanced power electronics; power conversion products; and underwater locator 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; and high performance communications and electronic intercept receivers and tuners. The company serves the U.S. and foreign military agencies; prime defense contractors; and commercial and defense satellite and spacecraft equipment manufacturers. HEICO Corporation was founded in 1949 and is headquartered in Hollywood, Florida.
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