Head to Head Review: Archer Aviation (NYSE:ACHR) versus Heico (NYSE:HEI)

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

Earnings and Valuation

This table compares Heico and Archer Aviation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heico	$4.49 billion	10.14	$690.39 million	$6.01	54.18
Archer Aviation	$300,000.00	14,681.71	-$618.20 million	($1.08)	-5.30

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

Institutional and Insider Ownership

27.1% of Heico shares are owned by institutional investors. Comparatively, 59.3% of Archer Aviation shares are owned by institutional investors. 4.9% of Heico shares are owned by company insiders. Comparatively, 5.6% of Archer Aviation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Heico and Archer Aviation’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%
Archer Aviation	N/A	-40.74%	-35.93%

Analyst Ratings

This is a summary of current recommendations for Heico and Archer Aviation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heico	0	4	9	3	2.94
Archer Aviation	1	3	5	0	2.44

Heico presently has a consensus price target of $395.71, indicating a potential upside of 21.52%. Archer Aviation has a consensus price target of $11.50, indicating a potential upside of 101.05%. Given Archer Aviation’s higher possible upside, analysts plainly believe Archer Aviation is more favorable than Heico.

Volatility and Risk

Heico has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Archer Aviation has a beta of 3.23, indicating that its stock price is 223% more volatile than the S&P 500.

Summary

Heico beats Archer Aviation on 10 of the 15 factors compared between the two stocks.

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.

About Archer Aviation

Archer Aviation Inc., together with its subsidiaries, engages in designs, develops, and operates electric vertical takeoff and landing aircraft for use in urban air mobility. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. The company is headquartered in San Jose, California.