Analyzing Bae Systems (OTCMKTS:BAESY) & Park Aerospace (NYSE:PKE)

Park Aerospace (NYSE:PKE) and Bae Systems (OTCMKTS:BAESY) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Profitability

This table compares Park Aerospace and Bae Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park Aerospace	11.57%	7.97%	7.01%
Bae Systems	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and recommmendations for Park Aerospace and Bae Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park Aerospace	0	0	1	0	3.00
Bae Systems	1	1	5	0	2.57

Earnings and Valuation

This table compares Park Aerospace and Bae Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park Aerospace	$63.13 million	5.92	$5.88 million	$0.36	52.15
Bae Systems	$28.48 billion	2.39	$2.50 billion	N/A	N/A

Bae Systems has higher revenue and earnings than Park Aerospace.

Institutional & Insider Ownership

77.8% of Park Aerospace shares are owned by institutional investors. Comparatively, 0.2% of Bae Systems shares are owned by institutional investors. 11.3% of Park Aerospace shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Park Aerospace has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Bae Systems has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Dividends

Park Aerospace pays an annual dividend of $0.50 per share and has a dividend yield of 2.7%. Bae Systems pays an annual dividend of $1.38 per share and has a dividend yield of 1.5%. Park Aerospace pays out 138.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Park Aerospace beats Bae Systems on 9 of the 13 factors compared between the two stocks.

About Park Aerospace

Park Aerospace Corp., an aerospace company, develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the aerospace market in North America, Asia, and Europe. It offers advanced composite materials, including film adhesives and lightning strike protection materials that are used to produce primary and secondary structures for jet engines, large and regional transport aircrafts, military aircrafts, unmanned aerial vehicles, business jets, general aviation aircrafts, and rotary wing aircrafts. The company also provides specialty ablative materials for rocket motors and nozzles; and specially designed materials for radome applications. In addition, it designs and fabricates composite parts, structures and assemblies, and low volume tooling for the aerospace industry. The company was formerly known as Park Electrochemical Corp. and changed its name to Park Aerospace Corp. in July 2019. Park Aerospace Corp. was incorporated in 1954 and is based in Westbury, New York.

About Bae Systems

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance capabilities, space electronics, and electric drive propulsion systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for critical weapons systems, C5ISR, and cyber security; and solutions and services to intelligence and federal/civilian agencies. It also offers data intelligence solutions to protect nations, businesses, and citizens. The Platforms & Services segment manufactures, and upgrades combat vehicles, weapons, and munitions, as well as provides naval ship repair services and the management of government-owned ammunition plants. The Air segment develops future combat air systems and falconworks. The Maritime segment provides maritime and land activities, including submarine, ship build, and support programmes. BAE Systems plc was founded in 1970 and is headquartered in Camberley, the United Kingdom.