AerSale (NASDAQ:ASLE) vs. Heico (NYSE:HEI.A) Financial Contrast

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

Analyst Recommendations

This is a breakdown of recent recommendations for AerSale and Heico, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AerSale	0	3	1	0	2.25
Heico	0	1	0	0	2.00

AerSale currently has a consensus price target of $8.00, suggesting a potential upside of 40.60%. Given AerSale’s stronger consensus rating and higher possible upside, equities analysts clearly believe AerSale is more favorable than Heico.

Volatility and Risk

AerSale has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Heico has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AerSale	$345.07 million	0.77	$5.85 million	($0.11)	-51.73
Heico	$3.86 billion	9.02	$514.11 million	$4.28	58.45

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AerSale	-1.78%	-0.64%	-0.46%
Heico	14.54%	15.88%	7.76%

Institutional and Insider Ownership

69.5% of AerSale shares are owned by institutional investors. Comparatively, 59.0% of Heico shares are owned by institutional investors. 37.3% of AerSale shares are owned by insiders. Comparatively, 9.8% of Heico shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Heico beats AerSale on 9 of the 14 factors compared between the two stocks.

About AerSale

AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps). The Asset Management Solutions segment engages in the sale and lease of aircraft, engines, and airframes, as well as disassembly of these assets for component parts. The TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, heavy aircraft maintenance and modification, and component MRO, as well as end-of-life disassembly services. This segment provides aircraft modifications, cargo and tanker conversions of aircraft, and aircraft storage; and MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components. The company was founded in 2008 and is headquartered in Coral Gables, Florida.

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. The company's 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, subcomponents, and other instruments utilized on military aircraft. Its 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 interference shielding and suppression filters; high-speed interface products; high voltage interconnection devices; high voltage advanced power electronics; power conversion products; and underwater locator beacons and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; three-dimensional microelectronic and stacked memory products; harsh environment connectivity products and custom molded cable assemblies; radio frequency and microwave amplifiers, transmitters, and receivers; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems; and nuclear radiation detectors. The company serves customers primarily in the aviation, defense, space, medical, telecommunications, and electronics industries. HEICO Corporation was founded in 1957 and is headquartered in Hollywood, Florida.