Spirit Aerosystems (NYSE:SPR) & Optex Systems (NASDAQ:OPXS) Head to Head Analysis

Spirit Aerosystems (NYSE:SPR) and Optex Systems (NASDAQ:OPXS) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Valuation & Earnings

This table compares Spirit Aerosystems and Optex Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spirit Aerosystems	$6.39 billion	0.64	-$2.14 billion	($22.11)	-1.57
Optex Systems	$39.48 million	2.25	$3.77 million	$0.75	17.16

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

Dividends

Spirit Aerosystems pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. Optex Systems pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. Spirit Aerosystems pays out -0.2% of its earnings in the form of a dividend. Optex Systems pays out 10.7% 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.

Profitability

This table compares Spirit Aerosystems and Optex Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spirit Aerosystems	-37.46%	N/A	-26.28%
Optex Systems	13.01%	24.67%	19.20%

Volatility & Risk

Spirit Aerosystems has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, Optex Systems has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Insider and Institutional Ownership

93.6% of Spirit Aerosystems shares are owned by institutional investors. Comparatively, 19.1% of Optex Systems shares are owned by institutional investors. 0.8% of Spirit Aerosystems shares are owned by insiders. Comparatively, 30.3% of Optex Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Spirit Aerosystems and Optex Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spirit Aerosystems	1	3	0	1	2.20
Optex Systems	0	0	1	0	3.00

Spirit Aerosystems presently has a consensus target price of $38.63, indicating a potential upside of 11.01%. Given Spirit Aerosystems’ higher probable upside, equities research analysts plainly believe Spirit Aerosystems is more favorable than Optex Systems.

Summary

Optex Systems beats Spirit Aerosystems on 11 of the 17 factors compared between the two stocks.

About Spirit Aerosystems

Spirit AeroSystems Holdings, Inc. engages in the design, engineering, manufacture, and marketing of commercial aerostructures worldwide. It operates through three segments: Commercial, Defense & Space, and Aftermarket. The Commercial segment offers forward, mid, and rear fuselage sections and systems, floor beams, nacelles, struts/pylons, horizontal and vertical stabilizers, flaps and slats flight control surfaces, wing structures, and wing systems. This segment primarily serves commercial and business/regional jet programs. The Defense & Space segment engages in the fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training on fuselage, strut, nacelle, and wing aerostructures; provision of missiles and hypersonics solutions, such as solid rocket motor throats, nozzles, re-entry vehicle thermal protections systems; forward cockpit and cabin, and fuselage work on rotorcraft aerostructures; and classified programs. This segment primarily serves U.S. Government defense programs. The Aftermarket segment provides maintenance, repair, and overhaul services; fuselage, strut, nacelle, and wing aerostructures spare parts; repair services for radome, flight control surfaces, and nacelles; rotable assets trading and leasing; and engineering services. This segment primarily serves both commercial and defense and space programs. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.

About Optex Systems

Optex Systems Holdings, Inc manufactures and sells optical sighting systems and assemblies primarily for the U.S. department of defense, foreign military applications, and commercial markets in the United States. It offers periscopes, such as laser and non-laser protected plastic and glass periscopes, electronic M17 day/thermal periscopes, and vision blocks; sighting systems, including back up sights, digital day and night sighting systems, M36 thermal periscope, unity mirrors, optical weapon system support and maintenance, commander weapon station sights, and sight assembly refurbishments; howitzers comprising M137 telescope, M187 mount, M119 aiming device, XM10 and aiming circles; and applied optics center consisting of laser interference filter, optical assemblies, laser filter units, day windows, and specialty thin film coatings, as well as other products, such as muzzle reference systems, binoculars, collimators, optical lenses and elements, and windows. The company also provides various periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Its products are installed on various types of U.S. military land vehicles, such as the Abrams, Bradley, and Stryker families of fighting vehicles, as well as light armored and armored security vehicles. The company offers its products directly to the federal government, prime contractors, and foreign governments. Optex Systems Holdings, Inc was founded in 1987 and is headquartered in Richardson, Texas. Optex Systems Holdings, Inc is a subsidiary of Sileas Corporation.