Head-To-Head Analysis: Heico (NYSE:HEI.A) vs. BWX Technologies (NYSE:BWXT)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heico	$3.86 billion	9.14	$514.11 million	$4.57	55.49
BWX Technologies	$2.70 billion	5.54	$281.94 million	$3.20	51.21

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

Volatility and Risk

Heico has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, BWX Technologies has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Insider and Institutional Ownership

59.0% of Heico shares are held by institutional investors. Comparatively, 94.4% of BWX Technologies shares are held by institutional investors. 9.8% of Heico shares are held by insiders. Comparatively, 0.5% of BWX Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Heico and BWX Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heico	0	1	0	0	2.00
BWX Technologies	1	3	4	1	2.56

BWX Technologies has a consensus price target of $154.51, indicating a potential downside of 5.71%. Given BWX Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe BWX Technologies is more favorable than Heico.

Dividends

Heico pays an annual dividend of $0.24 per share and has a dividend yield of 0.1%. BWX Technologies pays an annual dividend of $1.00 per share and has a dividend yield of 0.6%. Heico pays out 5.3% of its earnings in the form of a dividend. BWX Technologies pays out 31.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BWX Technologies has raised its dividend for 2 consecutive years. BWX Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Heico and BWX Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heico	14.96%	16.29%	8.00%
BWX Technologies	10.28%	30.61%	10.77%

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.

About BWX Technologies

BWX Technologies, Inc., together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.