Comparing Heico (NYSE:HEI) and Outdoor (NASDAQ:POWW)

Outdoor (NASDAQ:POWW) and Heico (NYSE:HEI) are both aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current ratings and target prices for Outdoor and Heico, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outdoor	1	1	2	0	2.25
Heico	0	8	10	0	2.56

Outdoor currently has a consensus price target of $2.40, indicating a potential upside of 11.63%. Heico has a consensus price target of $364.43, indicating a potential upside of 5.65%. Given Outdoor’s higher probable upside, analysts plainly believe Outdoor is more favorable than Heico.

Valuation and Earnings

This table compares Outdoor and Heico”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outdoor	$49.40 million	5.10	-$130.83 million	$0.04	53.75
Heico	$4.49 billion	10.72	$690.39 million	$4.91	70.25

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

Risk and Volatility

Outdoor has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Heico has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Outdoor	-161.16%	-8.65%	-7.16%
Heico	15.39%	16.80%	8.36%

Insider & Institutional Ownership

26.4% of Outdoor shares are held by institutional investors. Comparatively, 27.1% of Heico shares are held by institutional investors. 25.0% of Outdoor shares are held by insiders. Comparatively, 4.9% of Heico shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Heico beats Outdoor on 11 of the 14 factors compared between the two stocks.

About Outdoor

AMMO, Inc. designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories. In addition, the company's products comprises of armor piercing and hard armor piercing incendiary precision ammunition; and ammunition casings for pistol ammunition through large rifle ammunition. The company has a license agreement with Jeff Rann's ammunition for game hunting. AMMO, Inc. was founded in 2016 and is based in Scottsdale, Arizona.

About Heico

HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. Its Flight Support Group segment provides jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components. This segment also distributes hydraulic, pneumatic, structural, interconnect, mechanical, and electro-mechanical components for the commercial, regional, and general aviation markets; and offers repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and flight surfaces of commercial aircraft, as well as for avionics and navigation systems, and other instruments utilized on military aircraft. The company's Electronic Technologies Group segment provides electro-optical infrared simulation and test equipment; electro-optical laser products; electro-optical, microwave, and other power equipment; electromagnetic and radio frequency (RF) interference shielding and suppression filters; power conversion and interface; interconnection devices; and underwater locator beacons and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; memory products and specialty semiconductors; harsh environment connectivity products and custom molded cable assemblies; RF and microwave products; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems and airborne antennas; nuclear radiation detectors; silicone products; power amplifiers; ceramic-to-metal feedthroughs and connectors; technical surveillance countermeasures equipment; RF receivers and sources; embedded computing solutions; test sockets and adapters; and radiation assurance services. The company was incorporated in 1957 and is headquartered in Hollywood, Florida.