Comparing Heico (NYSE:HEI.A) and Park Aerospace (NYSE:PKE)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park Aerospace	$62.03 million	7.66	$5.88 million	$0.43	55.44
Heico	$4.49 billion	7.90	$690.39 million	$4.57	55.63

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Park Aerospace	13.14%	9.28%	8.25%
Heico	15.39%	16.80%	8.36%

Insider and Institutional Ownership

77.8% of Park Aerospace shares are held by institutional investors. Comparatively, 59.0% of Heico shares are held by institutional investors. 11.3% of Park Aerospace shares are held by company insiders. Comparatively, 9.8% of Heico shares are held by company insiders. 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.

Dividends

Park Aerospace pays an annual dividend of $0.50 per share and has a dividend yield of 2.1%. Heico pays an annual dividend of $0.24 per share and has a dividend yield of 0.1%. Park Aerospace pays out 116.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Heico pays out 5.3% of its earnings in the form of a dividend.

Risk & Volatility

Park Aerospace has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Heico has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Park Aerospace and Heico, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park Aerospace	0	0	1	0	3.00
Heico	0	1	0	1	3.00

Summary

Heico beats Park Aerospace on 10 of the 15 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 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.