Contrasting Spirit Aerosystems (NYSE:SPR) and Optex Systems (NASDAQ:OPXS)

Optex Systems (NASDAQ:OPXS) and Spirit Aerosystems (NYSE:SPR) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Volatility & Risk

Optex Systems has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Spirit Aerosystems has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Profitability

This table compares Optex Systems and Spirit Aerosystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Optex Systems	13.01%	24.67%	19.20%
Spirit Aerosystems	-40.65%	N/A	-30.66%

Institutional & Insider Ownership

19.1% of Optex Systems shares are held by institutional investors. Comparatively, 93.6% of Spirit Aerosystems shares are held by institutional investors. 30.3% of Optex Systems shares are held by insiders. Comparatively, 0.9% of Spirit Aerosystems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Optex Systems and Spirit Aerosystems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Optex Systems	0	0	1	0	3.00
Spirit Aerosystems	1	3	0	1	2.20

Spirit Aerosystems has a consensus target price of $38.63, indicating a potential downside of 2.08%. Given Spirit Aerosystems’ higher possible upside, analysts plainly believe Spirit Aerosystems is more favorable than Optex Systems.

Earnings & Valuation

This table compares Optex Systems and Spirit Aerosystems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Optex Systems	$33.99 million	3.10	$3.77 million	$0.75	20.35
Spirit Aerosystems	$6.32 billion	0.73	-$2.14 billion	($22.11)	-1.78

Optex Systems has higher earnings, but lower revenue than Spirit Aerosystems. Spirit Aerosystems is trading at a lower price-to-earnings ratio than Optex Systems, indicating that it is currently the more affordable of the two stocks.

Summary

Optex Systems beats Spirit Aerosystems on 10 of the 15 factors compared between the two stocks.

About Optex Systems

Optex Systems Holdings, Inc manufactures and sells optical sighting systems and assemblies primarily for the U.S. department of defense, foreign military applications, and commercial markets in the United States. It offers periscopes, such as laser and non-laser protected plastic and glass periscopes, electronic M17 day/thermal periscopes, and vision blocks; sighting systems, including back up sights, digital day and night sighting systems, M36 thermal periscope, unity mirrors, optical weapon system support and maintenance, commander weapon station sights, and sight assembly refurbishments; howitzers comprising M137 telescope, M187 mount, M119 aiming device, XM10 and aiming circles; and applied optics center consisting of laser interference filter, optical assemblies, laser filter units, day windows, and specialty thin film coatings, as well as other products, such as muzzle reference systems, binoculars, collimators, optical lenses and elements, and windows. The company also provides various periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Its products are installed on various types of U.S. military land vehicles, such as the Abrams, Bradley, and Stryker families of fighting vehicles, as well as light armored and armored security vehicles. The company offers its products directly to the federal government, prime contractors, and foreign governments. Optex Systems Holdings, Inc was founded in 1987 and is headquartered in Richardson, Texas. Optex Systems Holdings, Inc is a subsidiary of Sileas Corporation.

About Spirit Aerosystems

Spirit AeroSystems Holdings, Inc. engages in the design, engineering, manufacture, and marketing of commercial aerostructures worldwide. It operates through three segments: Commercial, Defense & Space, and Aftermarket. The Commercial segment offers forward, mid, and rear fuselage sections and systems, floor beams, nacelles, struts/pylons, horizontal and vertical stabilizers, flaps and slats flight control surfaces, wing structures, and wing systems. This segment primarily serves commercial and business/regional jet programs. The Defense & Space segment engages in the fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training on fuselage, strut, nacelle, and wing aerostructures; provision of missiles and hypersonics solutions, such as solid rocket motor throats, nozzles, re-entry vehicle thermal protections systems; forward cockpit and cabin, and fuselage work on rotorcraft aerostructures; and classified programs. This segment primarily serves U.S. Government defense programs. The Aftermarket segment provides maintenance, repair, and overhaul services; fuselage, strut, nacelle, and wing aerostructures spare parts; repair services for radome, flight control surfaces, and nacelles; rotable assets trading and leasing; and engineering services. This segment primarily serves both commercial and defense and space programs. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.