Contrasting Heico (NYSE:HEI.A) & Bae Systems (OTCMKTS:BAESY)

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

Profitability

This table compares Heico and Bae Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heico	16.08%	17.52%	8.86%
Bae Systems	N/A	N/A	N/A

Volatility & Risk

Heico has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Bae Systems has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Heico and Bae Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heico	0	1	0	1	3.00
Bae Systems	0	3	3	0	2.50

Insider & Institutional Ownership

59.0% of Heico shares are held by institutional investors. Comparatively, 0.2% of Bae Systems shares are held by institutional investors. 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 is poised for long-term growth.

Dividends

Heico pays an annual dividend of $0.24 per share and has a dividend yield of 0.1%. Bae Systems pays an annual dividend of $2.38 per share and has a dividend yield of 2.5%. Heico pays out 4.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Heico and Bae Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heico	$4.49 billion	7.89	$690.39 million	$5.60	45.27
Bae Systems	$37.36 billion	1.92	$2.72 billion	N/A	N/A

Bae Systems has higher revenue and earnings than Heico.

Summary

Heico beats Bae Systems on 9 of the 14 factors compared between the two stocks.

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.

About Bae Systems

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance capabilities, space electronics, and electric drive propulsion systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for critical weapons systems, C5ISR, and cyber security; and solutions and services to intelligence and federal/civilian agencies. It also offers data intelligence solutions to protect nations, businesses, and citizens. The Platforms & Services segment manufactures, and upgrades combat vehicles, weapons, and munitions, as well as provides naval ship repair services and the management of government-owned ammunition plants. The Air segment develops future combat air systems and falconworks. The Maritime segment provides maritime and land activities, including submarine, ship build, and support programmes. BAE Systems plc was founded in 1970 and is headquartered in Camberley, the United Kingdom.