Comparing Park Aerospace (NYSE:PKE) & Coda Octopus Group (NASDAQ:CODA)

Park Aerospace (NYSE:PKE) and Coda Octopus Group (NASDAQ:CODA) are both small-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Risk and Volatility

Park Aerospace has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Coda Octopus Group has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Institutional and Insider Ownership

77.8% of Park Aerospace shares are owned by institutional investors. Comparatively, 20.1% of Coda Octopus Group shares are owned by institutional investors. 7.1% of Park Aerospace shares are owned by company insiders. Comparatively, 19.5% of Coda Octopus Group 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.

Profitability

This table compares Park Aerospace and Coda Octopus Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park Aerospace	16.70%	10.75%	9.77%
Coda Octopus Group	17.64%	8.32%	7.58%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Park Aerospace and Coda Octopus Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park Aerospace	0	0	4	0	3.00
Coda Octopus Group	0	1	2	0	2.67

Park Aerospace currently has a consensus price target of $42.50, suggesting a potential upside of 39.59%. Coda Octopus Group has a consensus price target of $14.00, suggesting a potential upside of 25.67%. Given Park Aerospace’s stronger consensus rating and higher probable upside, research analysts plainly believe Park Aerospace is more favorable than Coda Octopus Group.

Earnings and Valuation

This table compares Park Aerospace and Coda Octopus Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park Aerospace	$73.30 million	9.03	$11.27 million	$0.63	48.33
Coda Octopus Group	$26.56 million	4.73	$4.13 million	$0.44	25.32

Park Aerospace has higher revenue and earnings than Coda Octopus Group. Coda Octopus Group is trading at a lower price-to-earnings ratio than Park Aerospace, indicating that it is currently the more affordable of the two stocks.

Summary

Park Aerospace beats Coda Octopus Group on 11 of the 14 factors compared between the two stocks.

About Park Aerospace

Park Aerospace Corp., an aerospace company, develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the aerospace market in North America, Asia, and Europe. It offers advanced composite materials, including film adhesives and lightning strike protection materials that are used to produce primary and secondary structures for jet engines, large and regional transport aircrafts, military aircrafts, unmanned aerial vehicles, business jets, general aviation aircrafts, and rotary wing aircrafts. The company also provides specialty ablative materials for rocket motors and nozzles; and specially designed materials for radome applications. In addition, it designs and fabricates composite parts, structures and assemblies, and low volume tooling for the aerospace industry. The company was formerly known as Park Electrochemical Corp. and changed its name to Park Aerospace Corp. in July 2019. Park Aerospace Corp. was incorporated in 1954 and is based in Westbury, New York.

About Coda Octopus Group

Coda Octopus Group, Inc., together with its subsidiaries, develops, sells, and rentals underwater technologies and equipment for real time 3D imaging, mapping, defense, and survey applications in the Americas, Europe, Australia, Asia, the Middle East, and Africa. The company operates through two segments, Marine Engineering Business and Marine Technology Business. The company's solutions include geophysical systems; GNSS-aided navigation systems (attitude and positioning systems); real time volumetric imaging sonar products; and diver augmented vision display systems. It also offers GeoSurvey, a software and hardware package for acquisition and processing of sidescan sonar and sub-bottom profiler data in oil and gas companies; DA4G, a geophysical hardware; and Survey Engine, a software product that provides post-processing solutions for sidescan sonar and sub-bottom profiler data. In addition, the company offers 3D/4D/5D/6D imaging sonar technology under the Echoscope and Echoscope PIPE name; diving technology under the CodaOctopus DAVD; and operates as a sub-contractor for defense contractors, as well as supplies sub-assemblies for broader mission critical defense systems. It markets and sells its technology solutions for the subsea and underwater markets. Coda Octopus Group, Inc. was founded in 1994 and is headquartered in Orlando, Florida.