FLIR Systems (NASDAQ: FLIR) and NAPCO Security Technologies (NASDAQ:NSSC) are both aerospace companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitabiliy, dividends and analyst recommendations.

Valuation & Earnings

This table compares FLIR Systems and NAPCO Security Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FLIR Systems $1.72 billion 3.00 $365.02 million $1.56 24.10
NAPCO Security Technologies $85.75 million 2.01 $8.06 million $0.31 29.52

FLIR Systems has higher revenue and earnings than NAPCO Security Technologies. FLIR Systems is trading at a lower price-to-earnings ratio than NAPCO Security Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares FLIR Systems and NAPCO Security Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FLIR Systems 12.44% 13.97% 9.05%
NAPCO Security Technologies 6.78% 11.09% 8.98%

Dividends

FLIR Systems pays an annual dividend of $0.60 per share and has a dividend yield of 1.6%. NAPCO Security Technologies does not pay a dividend. FLIR Systems pays out 38.5% of its earnings in the form of a dividend.

Insider and Institutional Ownership

90.6% of FLIR Systems shares are held by institutional investors. Comparatively, 24.6% of NAPCO Security Technologies shares are held by institutional investors. 3.0% of FLIR Systems shares are held by insiders. Comparatively, 37.8% of NAPCO Security Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

FLIR Systems has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, NAPCO Security Technologies has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for FLIR Systems and NAPCO Security Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FLIR Systems 0 3 4 1 2.75
NAPCO Security Technologies 0 1 2 0 2.67

FLIR Systems currently has a consensus target price of $37.43, indicating a potential downside of 0.46%. NAPCO Security Technologies has a consensus target price of $8.75, indicating a potential downside of 4.37%. Given FLIR Systems’ stronger consensus rating and higher possible upside, equities research analysts plainly believe FLIR Systems is more favorable than NAPCO Security Technologies.

Summary

FLIR Systems beats NAPCO Security Technologies on 14 of the 17 factors compared between the two stocks.

FLIR Systems Company Profile

FLIR Systems, Inc. (FLIR) designs, develops, markets and distributes thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems and threat-detection solutions. The Company’s segments include Surveillance, Instruments, Security, OEM & Emerging Markets, Maritime and Detection. Its Surveillance segment provides enhanced imaging and recognition solutions. Its Instruments segment provides devices that image, measure and assess thermal energy, gases and other environmental elements for industrial, commercial, and scientific applications under the FLIR and Extech brands. Its OEM & Emerging Markets segment provides thermal imaging camera cores and components. Its Maritime segment develops and manufactures electronics and imaging instruments. Its Security segment develops and manufactures a range of cameras and video recording systems. The Detection segment offers sensors, instruments and integrated platform solutions.

NAPCO Security Technologies Company Profile

NAPCO Security Technologies, Inc. is a manufacturer of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold across the world principally to independent distributors, dealers and installers of security equipment. The Company manufactures and markets various products for alarm systems, which include automatic communicators, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panel and area detectors. It manufactures a range of door locking devices, including microprocessor-based electronic door locks with push button, card reader and bio-metric operation, door alarms, mechanical door locks and simple dead bolt locks. It also markets peripheral and related equipment manufactured by other companies.

Receive News & Stock Ratings for FLIR Systems Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for FLIR Systems Inc. and related stocks with our FREE daily email newsletter.