Financial Survey: Karman (NYSE:KRMN) vs. Heico (NYSE:HEI)

Heico (NYSE:HEI) and Karman (NYSE:KRMN) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Volatility and Risk

Heico has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Karman has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Profitability

This table compares Heico and Karman’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heico	16.38%	18.00%	9.15%
Karman	7.54%	17.68%	5.20%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Heico and Karman, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heico	0	7	9	2	2.72
Karman	1	1	10	2	2.93

Heico presently has a consensus price target of $387.33, suggesting a potential upside of 11.68%. Karman has a consensus price target of $73.07, suggesting a potential upside of 66.51%. Given Karman’s stronger consensus rating and higher probable upside, analysts clearly believe Karman is more favorable than Heico.

Earnings and Valuation

This table compares Heico and Karman”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heico	$4.49 billion	10.81	$690.39 million	$6.01	57.71
Karman	$471.50 million	12.33	$17.37 million	$0.39	112.52

Heico has higher revenue and earnings than Karman. Heico is trading at a lower price-to-earnings ratio than Karman, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

27.1% of Heico shares are held by institutional investors. 4.9% of Heico shares are held by insiders. Comparatively, 5.8% of Karman shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Heico beats Karman on 8 of the 14 factors compared between the two stocks.

About Heico

HEICO Corporation is an aerospace and electronics company that develops, manufactures and services products for commercial aviation, defense, space and other markets. Its Flight Support Group supplies replacement parts for aircraft and provides repair and overhaul services for aircraft components, while its Electronic Technologies Group makes specialized electronic, electro-optical and other technology products. The company’s products and services support airlines, aircraft operators, original equipment manufacturers, government agencies and defense contractors.

About Karman

Karman Holdings, Inc. is an aerospace and defense company that designs and manufactures systems and components for missile and space programs. Its products support applications including propulsion, payload delivery, launch vehicles and spacecraft. The company supplies mission-critical hardware such as rocket motor components, separation systems, structures and related assemblies. Its products are used by government and commercial customers across the United States and in international markets. Karman brings together businesses with capabilities in engineering, manufacturing and testing for aerospace and defense applications.