Contrasting Heico (NYSE:HEI) and Bombardier (OTCMKTS:BDRBF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bombardier	9.74%	-75.69%	7.46%
Heico	16.38%	18.00%	9.15%

Insider and Institutional Ownership

27.1% of Heico shares are owned by institutional investors. 4.9% of Heico shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Bombardier and Heico”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bombardier	$9.55 billion	2.16	$928.00 million	$9.11	22.81
Heico	$4.49 billion	9.29	$690.39 million	$6.01	49.62

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Bombardier and Heico, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bombardier	1	4	4	1	2.50
Heico	0	7	8	3	2.78

Bombardier presently has a consensus price target of $263.00, suggesting a potential upside of 26.55%. Heico has a consensus price target of $387.00, suggesting a potential upside of 29.77%. Given Heico’s stronger consensus rating and higher possible upside, analysts clearly believe Heico is more favorable than Bombardier.

Summary

Heico beats Bombardier on 11 of the 14 factors compared between the two stocks.

About Bombardier

Bombardier Inc. engages in the design, manufacture, and sale of business aircraft and aircraft structural components worldwide. It provides new aircraft, specialized aircraft solutions, and pre-owned aircraft. The company also offers aftermarket services, including parts, service centers, smart services, training, and technical publications. It serves multinational corporations, charter and fractional ownership providers, governments, and private individuals. The company was incorporated in 1902 and is based in Dorval, Canada.

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. Its 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, and other instruments utilized on military aircraft. The company's 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 frequency (RF) interference shielding and suppression filters; power conversion and interface; interconnection devices; and underwater locator beacons and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; memory products and specialty semiconductors; harsh environment connectivity products and custom molded cable assemblies; RF and microwave products; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems and airborne antennas; nuclear radiation detectors; silicone products; power amplifiers; ceramic-to-metal feedthroughs and connectors; technical surveillance countermeasures equipment; RF receivers and sources; embedded computing solutions; test sockets and adapters; and radiation assurance services. The company was incorporated in 1957 and is headquartered in Hollywood, Florida.