Heico (HEI) and The Competition Critical Survey

Heico (NYSE:HEI) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it compare to its peers? We will compare Heico to related businesses based on the strength of its institutional ownership, dividends, valuation, earnings, analyst recommendations, profitability and risk.

Profitability

This table compares Heico and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heico	16.38%	18.00%	9.15%
Heico Competitors	-329.31%	-49.26%	-4.60%

Valuation and Earnings

This table compares Heico and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Heico	$4.49 billion	$690.39 million	56.55
Heico Competitors	$8.42 billion	$569.54 million	15.48

Heico’s peers have higher revenue, but lower earnings than Heico. Heico is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Heico has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Heico’s peers have a beta of 1.32, indicating that their average share price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Heico and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heico	0	7	9	2	2.72
Heico Competitors	2173	8290	12826	582	2.50

Heico currently has a consensus target price of $387.33, indicating a potential upside of 13.97%. As a group, “Aerospace & Defense” companies have a potential upside of 30.63%. Given Heico’s peers higher possible upside, analysts clearly believe Heico has less favorable growth aspects than its peers.

Dividends

Heico pays an annual dividend of $0.26 per share and has a dividend yield of 0.1%. Heico pays out 4.3% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 39.0% of their earnings in the form of a dividend. Heico has increased its dividend for 17 consecutive years.

Insider & Institutional Ownership

27.1% of Heico shares are owned by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 4.9% of Heico shares are owned by company insiders. Comparatively, 11.8% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Heico beats its peers on 8 of the 15 factors compared.

Heico Company Profile

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.