Applied Visual Sciences (OTCMKTS:APVS) vs. Hexcel (NYSE:HXL) Critical Review

Applied Visual Sciences (OTCMKTS:APVS) and Hexcel (NYSE:HXL) are both aerospace companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares Applied Visual Sciences and Hexcel”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Visual Sciences	N/A	N/A	N/A	N/A	N/A
Hexcel	$1.89 billion	3.69	$109.40 million	$1.52	60.89

Hexcel has higher revenue and earnings than Applied Visual Sciences.

Risk and Volatility

Applied Visual Sciences has a beta of 6.98, suggesting that its share price is 598% more volatile than the S&P 500. Comparatively, Hexcel has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Institutional & Insider Ownership

95.5% of Hexcel shares are held by institutional investors. 33.0% of Applied Visual Sciences shares are held by company insiders. Comparatively, 1.8% of Hexcel shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Applied Visual Sciences and Hexcel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Visual Sciences	N/A	N/A	N/A
Hexcel	6.07%	11.08%	5.66%

Analyst Ratings

This is a breakdown of current ratings and price targets for Applied Visual Sciences and Hexcel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Visual Sciences	0	0	0	0	0.00
Hexcel	1	10	3	1	2.27

Hexcel has a consensus target price of $91.00, indicating a potential downside of 1.68%. Given Hexcel’s stronger consensus rating and higher probable upside, analysts plainly believe Hexcel is more favorable than Applied Visual Sciences.

Summary

Hexcel beats Applied Visual Sciences on 9 of the 11 factors compared between the two stocks.

About Applied Visual Sciences

Applied Visual Sciences, Inc., a software technology company, designs and develops computer-vision detection solutions based on image processing science for aviation/homeland security and healthcare markets. It utilizes imaging technologies and analytics to create integrated information management technology products and services that address problems for corporations and governmental agencies. The company offers PinPoint, an intelligent computer-vision automated target recognition technology for the detection of guns, explosives, and other threat items contained in baggage in the airport environment or for building security applications; and Signature Mapping platform technology for use in the imaging field of diagnostic radiology and pathology. It also provides Signature Mapping Detection System, an automated hardware-software laboratory solution used to operate various infectious disease applications through multi-threaded detection algorithms. In addition, the company offers Signature Mapping Tuberculosis Detection software, an automated hardware and software technology platform; and Signature Mapping Breast Cancer Detection, a breast cancer detection solution. Applied Visual Sciences, Inc. markets its products through direct sales and indirect distribution channels worldwide. The company was formerly known as Guardian Technologies International, Inc. and changed its name to Applied Visual Sciences, Inc. in July 2010. Applied Visual Sciences, Inc. was founded in 1989 and is based in Leesburg, Virginia.

About Hexcel

Hexcel Corporation develops, manufactures, and markets carbon fibers, structural reinforcements, honeycomb structures, resins, and composite materials and parts for use in commercial aerospace, space and defense, and industrial applications. It operates through two segments, Composite Materials and Engineered Products. The Composite Materials segment manufactures and markets fabrics, multi-axials, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military and commercial aircraft, wind turbine blades, recreational products, and other industrial applications, as well as in automotive, marine, and rail transportation. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, rotorcraft blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components used in rotorcraft blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings; and RF interference control products for military and aerospace applications. This segment also provides interference control materials, structural composites, and services; dielectric absorber foams; magnetic absorbers; and thermoplastics for commercial and defense applications. The company sells its products directly through its managers, product managers, and sales personnel, as well as through independent distributors in the Americas, Europe, the Asia Pacific, India, and Africa. Hexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut.