Optex Systems (NASDAQ:OPXS) vs. AIRO Group (NASDAQ:AIRO) Financial Review

Optex Systems (NASDAQ:OPXS) and AIRO Group (NASDAQ:AIRO) are both small-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Risk & Volatility

Optex Systems has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, AIRO Group has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Optex Systems and AIRO Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Optex Systems	0	2	0	1	2.67
AIRO Group	1	2	3	0	2.33

AIRO Group has a consensus price target of $16.50, indicating a potential upside of 245.19%. Given AIRO Group’s higher probable upside, analysts plainly believe AIRO Group is more favorable than Optex Systems.

Profitability

This table compares Optex Systems and AIRO Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Optex Systems	9.77%	17.57%	14.65%
AIRO Group	-25.01%	-4.05%	-3.86%

Insider and Institutional Ownership

19.1% of Optex Systems shares are owned by institutional investors. 27.7% of Optex Systems shares are owned by insiders. Comparatively, 22.9% of AIRO Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Optex Systems and AIRO Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Optex Systems	$41.34 million	1.43	$5.15 million	$0.55	15.49
AIRO Group	$90.91 million	1.66	-$4.10 million	($0.83)	-5.76

Optex Systems has higher earnings, but lower revenue than AIRO Group. AIRO Group is trading at a lower price-to-earnings ratio than Optex Systems, indicating that it is currently the more affordable of the two stocks.

Summary

Optex Systems beats AIRO Group on 10 of the 15 factors compared between the two stocks.

About Optex Systems

Optex Systems Holdings, Inc. designs, manufactures and sells optical sighting systems and precision optical assemblies for defense and commercial markets. Its products are used in military vehicles, small arms and other applications that require specialized optical equipment. The company’s product range includes periscopes, rifle scopes, binoculars, night-vision equipment, laser-protection filters and related optical components. Optex supplies military and government customers, as well as defense contractors and other commercial customers.

About AIRO Group

AIRO Group is an aerospace and defense company that develops and supplies technologies for commercial, government and defense customers. Its businesses span unmanned aircraft systems, avionics, pilot training and electric air mobility. The company’s offerings include drones and related systems, cockpit avionics through its Aspen Avionics business, and flight-training services. Its electric-air-mobility activities include the development of electric vertical takeoff and landing aircraft through Jaunt Air Mobility.