Analyzing Heico (HEI) and Its Competitors

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

Valuation and Earnings

This table compares Heico and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Heico	$5.18 billion	$690.39 million	56.92
Heico Competitors	$8.47 billion	$569.01 million	22.01

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heico	0	7	9	2	2.72
Heico Competitors	2162	8279	12805	581	2.50

Heico currently has a consensus target price of $387.33, indicating a potential upside of 13.23%. As a group, “Aerospace & Defense” companies have a potential upside of 29.20%. Given Heico’s competitors higher probable upside, analysts plainly believe Heico has less favorable growth aspects than its competitors.

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 38.4% of their earnings in the form of a dividend. Heico has raised its dividend for 17 consecutive years.

Volatility & Risk

Heico has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Heico’s competitors have a beta of 1.31, suggesting that their average stock price is 31% more volatile than the S&P 500.

Insider & Institutional Ownership

27.1% of Heico shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 4.9% of Heico shares are held by company insiders. Comparatively, 11.8% of shares of all “Aerospace & Defense” companies 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 Heico and its competitors’ 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	-347.37%	-49.10%	-4.38%

Summary

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

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.