Ondas (NASDAQ:ONDS) and Park Aerospace (NYSE:PKE) Critical Review

Ondas (NASDAQ:ONDS) and Park Aerospace (NYSE:PKE) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Volatility and Risk

Ondas has a beta of 2.74, suggesting that its share price is 174% more volatile than the S&P 500. Comparatively, Park Aerospace has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Earnings and Valuation

This table compares Ondas and Park Aerospace”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ondas	$174.10 million	23.82	-$132.02 million	($0.07)	-103.67
Park Aerospace	$76.21 million	8.52	$11.27 million	$0.63	47.41

Park Aerospace has lower revenue, but higher earnings than Ondas. Ondas is trading at a lower price-to-earnings ratio than Park Aerospace, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Ondas and Park Aerospace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ondas	1	1	8	0	2.70
Park Aerospace	0	0	4	0	3.00

Ondas currently has a consensus price target of $17.18, indicating a potential upside of 136.67%. Park Aerospace has a consensus price target of $42.50, indicating a potential upside of 42.28%. Given Ondas’ higher possible upside, analysts plainly believe Ondas is more favorable than Park Aerospace.

Insider & Institutional Ownership

37.7% of Ondas shares are owned by institutional investors. Comparatively, 77.8% of Park Aerospace shares are owned by institutional investors. 1.7% of Ondas shares are owned by company insiders. Comparatively, 7.1% of Park Aerospace shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Ondas and Park Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ondas	93.55%	-14.20%	-7.15%
Park Aerospace	16.70%	10.75%	9.77%

Summary

Park Aerospace beats Ondas on 8 of the 14 factors compared between the two stocks.

About Ondas

Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. It operates in two segments, Ondas Networks and Ondas Autonomous Systems. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Optimus, an AI-powered drone with imaging payloads; the Airbase, a ruggedized weatherproof base station for housing, data processing, and cloud transfer; Insightful, a secure web portal and API, which enables remote interaction with the system, data, and resulting analytics anywhere in the world; and the Raider, a counter-drone system for security and the protection of critical infrastructure, assets, and people from the threat of hostile drones. It serves users in rail, energy, mining, agriculture, public safety, critical infrastructure, and government markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.

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.