Heico (NYSE:HEI.A – Get Free Report) and AeroVironment (NASDAQ:AVAV – Get Free Report) are both large-cap aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Profitability
This table compares Heico and AeroVironment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Heico | 14.96% | 16.29% | 8.00% |
| AeroVironment | -5.08% | 3.42% | 2.70% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Heico and AeroVironment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Heico | 0 | 0 | 0 | 1 | 4.00 |
| AeroVironment | 1 | 1 | 19 | 2 | 2.96 |
Volatility & Risk
Heico has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, AeroVironment has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.
Institutional and Insider Ownership
59.0% of Heico shares are owned by institutional investors. Comparatively, 86.4% of AeroVironment shares are owned by institutional investors. 9.8% of Heico shares are owned by company insiders. Comparatively, 0.8% of AeroVironment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Heico and AeroVironment”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Heico | $3.86 billion | 8.74 | $514.11 million | $4.57 | 53.00 |
| AeroVironment | $820.63 million | 14.28 | $43.62 million | ($1.25) | -187.72 |
Heico has higher revenue and earnings than AeroVironment. AeroVironment is trading at a lower price-to-earnings ratio than Heico, indicating that it is currently the more affordable of the two stocks.
Summary
Heico beats AeroVironment on 9 of the 15 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 AeroVironment
AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments. The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, the company offers small UAS products, including training, spare parts, product repair, product replacement, and the customer contracted operation. Further, it develops high-altitude pseudo-satellite UAS systems. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.
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