Critical Survey: Héroux-Devtek (OTCMKTS:HERXF) versus DEFSEC Technologies (NASDAQ:DFSC)

DEFSEC Technologies (NASDAQ:DFSC) and Héroux-Devtek (OTCMKTS:HERXF) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

21.4% of DEFSEC Technologies shares are held by institutional investors. Comparatively, 54.4% of Héroux-Devtek shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares DEFSEC Technologies and Héroux-Devtek’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DEFSEC Technologies	-195.30%	-160.64%	-95.30%
Héroux-Devtek	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for DEFSEC Technologies and Héroux-Devtek, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DEFSEC Technologies	1	0	0	0	1.00
Héroux-Devtek	0	0	0	0	0.00

Earnings & Valuation

This table compares DEFSEC Technologies and Héroux-Devtek”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DEFSEC Technologies	$3.53 million	0.77	-$6.88 million	($25.94)	-0.07
Héroux-Devtek	N/A	N/A	N/A	$0.32	67.61

Héroux-Devtek has lower revenue, but higher earnings than DEFSEC Technologies. DEFSEC Technologies is trading at a lower price-to-earnings ratio than Héroux-Devtek, indicating that it is currently the more affordable of the two stocks.

Summary

Héroux-Devtek beats DEFSEC Technologies on 6 of the 8 factors compared between the two stocks.

About DEFSEC Technologies

DEFSEC develops and commercializes breakthrough next-generation tactical systems for military and security forces. The Company’s current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons. Other DEFSEC products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems, and all come integrated with TAK. The Company also has a new proprietary non-lethal product line branded PARA OPSTM with applications across all segments of the non-lethal market, including law enforcement. The Company is headquartered in Ottawa, Canada, with representative offices in London, UK and Abu Dhabi, UAE.

About Héroux-Devtek

Héroux-Devtek Inc. engages in the design, development, manufacture, and repair and overhaul of aircraft landing gears, hydraulic and electromechanical flight control actuators, custom ball screws, and fracture-critical components. The company serves civil and defence sectors of the aerospace market. It operates in Canada, the United States, the United Kingdom, Rest of Europe, Spain, and internationally. The company was formerly known as Heroux Inc. and changed its name to Héroux-Devtek Inc. in 2000. Héroux-Devtek Inc. was incorporated in 1942 and is headquartered in Longueuil, Canada.