Contrasting Heico (HEI.A) & Its Rivals

Heico (NYSE:HEI.A) is one of 46 publicly-traded companies in the “AEROSP/DEF EQ” industry, but how does it compare to its competitors? We will compare Heico to related businesses based on the strength of its earnings, risk, analyst recommendations, profitability, dividends, institutional ownership and valuation.

Institutional & Insider Ownership

59.0% of Heico shares are held by institutional investors. Comparatively, 65.1% of shares of all “AEROSP/DEF EQ” companies are held by institutional investors. 9.8% of Heico shares are held by company insiders. Comparatively, 8.9% of shares of all “AEROSP/DEF EQ” companies are held 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.

Dividends

Heico pays an annual dividend of $0.24 per share and has a dividend yield of 0.1%. Heico pays out 5.6% of its earnings in the form of a dividend. As a group, “AEROSP/DEF EQ” companies pay a dividend yield of 0.4% and pay out 20.1% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Heico and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Heico	$3.86 billion	$514.11 million	59.26
Heico Competitors	$3.46 billion	$265.08 million	76.00

Heico has higher revenue and earnings than its competitors. Heico is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings for Heico and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heico	0	1	0	0	2.00
Heico Competitors	349	1814	2779	97	2.52

As a group, “AEROSP/DEF EQ” companies have a potential downside of 1.65%. Given Heico’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Heico has less favorable growth aspects than its competitors.

Profitability

This table compares Heico and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heico	14.54%	15.88%	7.76%
Heico Competitors	-42.27%	-0.19%	3.44%

Risk & Volatility

Heico has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Heico’s competitors have a beta of 0.98, meaning that their average share price is 2% less volatile than the S&P 500.

Summary

Heico beats its competitors on 8 of the 15 factors compared.

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.