Head-To-Head Contrast: American Defense Systems (OTCMKTS:ADFS) vs. Heico (NYSE:HEI)

American Defense Systems (OTCMKTS:ADFS) and Heico (NYSE:HEI) are both aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Risk and Volatility

American Defense Systems has a beta of 9.9, meaning that its share price is 890% more volatile than the S&P 500. Comparatively, Heico has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Insider & Institutional Ownership

27.1% of Heico shares are owned by institutional investors. 19.3% of American Defense Systems shares are owned by insiders. Comparatively, 4.9% of Heico shares are owned by 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.

Profitability

This table compares American Defense Systems and Heico’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Defense Systems	N/A	N/A	N/A
Heico	15.38%	16.57%	8.34%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Defense Systems	N/A	N/A	N/A	N/A	N/A
Heico	$4.49 billion	8.53	$690.39 million	$5.06	54.21

Heico has higher revenue and earnings than American Defense Systems.

Analyst Recommendations

This is a summary of current ratings for American Defense Systems and Heico, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Defense Systems	0	0	0	0	0.00
Heico	0	7	10	0	2.59

Heico has a consensus target price of $364.43, suggesting a potential upside of 32.85%. Given Heico’s stronger consensus rating and higher possible upside, analysts plainly believe Heico is more favorable than American Defense Systems.

Summary

Heico beats American Defense Systems on 8 of the 10 factors compared between the two stocks.

About American Defense Systems

American Defense Systems, Inc., together with its subsidiaries, engages in the design and supply of transparent and opaque armor solutions for military and commercial applications. It offers crew protection kits that provide armor protection of operator compartments; VistaSteel transparent armor, a laminated glass that provides defensive barrier to protect against firearms, physical attack, and explosive blasts; VistaSteel opaque armors; lightweight armor systems; and VistaGuard windows, which are forced entry blast resistant windows, window frames, and transparent armor assemblies used to mitigate forced entry, ballistic, and terrorist threats in high visibility targets. The company also provides portable transparent ballistic shield, a bullet-resistant transparent mobile shield; heated ballistic ship windows; and hardware products, such as hinges, rotary and slam latches, combat locks, and egress windows. Its armor solutions for construction equipment, and tactical and non-tactical transport vehicles are designed to protect their occupants from landmines, hostile fire, and improvised explosive devices. In addition, the company offers engineering and consulting services; and develops and installs detention and security hardware, entry control and monitoring systems, intrusion detection systems, and security glass. Its products are used in transport and fighting vehicles, construction equipment, sea craft, and various fixed structures, which require ballistic and blast attenuation. American Defense Systems, Inc. serves various branches of the United States military, including the United States Department of Defense; and other United States government, law enforcement, and correctional agencies, as well as private sector customers. The company was founded in 1994 and is headquartered in Lillington, North Carolina.

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.