Contrasting DEFSEC Technologies (NASDAQ:DFSC) & Héroux-Devtek (OTCMKTS:HERXF)

Héroux-Devtek (OTCMKTS:HERXF) and DEFSEC Technologies (NASDAQ:DFSC) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Héroux-Devtek and DEFSEC Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Héroux-Devtek	N/A	N/A	N/A
DEFSEC Technologies	-195.30%	-160.64%	-95.30%

Earnings & Valuation

This table compares Héroux-Devtek and DEFSEC Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Héroux-Devtek	N/A	N/A	N/A	$0.32	67.61
DEFSEC Technologies	$3.53 million	0.79	-$6.88 million	($25.94)	-0.08

Héroux-Devtek has higher earnings, but lower revenue than DEFSEC Technologies. DEFSEC Technologies is trading at a lower price-to-earnings ratio than Héroux-Devtek, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Héroux-Devtek and DEFSEC Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Héroux-Devtek	0	0	0	0	0.00
DEFSEC Technologies	1	0	0	0	1.00

Institutional & Insider Ownership

54.4% of Héroux-Devtek shares are held by institutional investors. Comparatively, 21.4% of DEFSEC Technologies shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Héroux-Devtek beats DEFSEC Technologies on 6 of the 8 factors compared between the two stocks.

About Héroux-Devtek

Héroux-Devtek Inc. engages in the design, development, manufacture, and repair and overhaul of aircraft landing gears, hydraulic and electromechanical flight control actuators, custom ball screws, and fracture-critical components. The company serves civil and defence sectors of the aerospace market. It operates in Canada, the United States, the United Kingdom, Rest of Europe, Spain, and internationally. The company was formerly known as Heroux Inc. and changed its name to Héroux-Devtek Inc. in 2000. Héroux-Devtek Inc. was incorporated in 1942 and is headquartered in Longueuil, Canada.

About DEFSEC Technologies

DEFSEC develops and commercializes breakthrough next-generation tactical systems for military and security forces. The Company’s current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons. Other DEFSEC products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems, and all come integrated with TAK. The Company also has a new proprietary non-lethal product line branded PARA OPSTM with applications across all segments of the non-lethal market, including law enforcement. The Company is headquartered in Ottawa, Canada, with representative offices in London, UK and Abu Dhabi, UAE.