Ducommun (NYSE:DCO) & Optex Systems (NASDAQ:OPXS) Head to Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ducommun	-4.11%	8.47%	4.89%
Optex Systems	10.75%	22.12%	17.74%

Analyst Ratings

This is a breakdown of recent recommendations for Ducommun and Optex Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ducommun	0	2	5	0	2.71
Optex Systems	0	1	0	0	2.00

Ducommun currently has a consensus price target of $140.25, suggesting a potential upside of 10.48%. Given Ducommun’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Ducommun is more favorable than Optex Systems.

Institutional and Insider Ownership

92.2% of Ducommun shares are held by institutional investors. Comparatively, 19.1% of Optex Systems shares are held by institutional investors. 8.9% of Ducommun shares are held by company insiders. Comparatively, 27.7% of Optex Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ducommun	$824.73 million	2.31	-$33.94 million	($2.31)	-54.96
Optex Systems	$41.34 million	2.18	$5.15 million	$0.66	19.71

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

Risk and Volatility

Ducommun has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Optex Systems has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

About Ducommun

Ducommun Incorporated provides engineering and manufacturing services for products and applications used primarily in the aerospace and defense, industrial, medical, and other industries in the United States. The company operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment provides cable assemblies and interconnect systems; printed circuit board assemblies; electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, printed circuit board assemblies, cable assemblies, wire harnesses, interconnect systems, lightning diversion strips, surge suppressors, conformal shields, and other assemblies. The segment also supplies engineered products, including illuminated pushbutton switches and panels for aviation and test systems; microwave and millimeter switches and filters for radio frequency systems and test instrumentation; and motors and resolvers for motion control. In addition, this segment provides engineering expertise for aerospace system design, development, integration, and testing. The Structural Systems segment designs, engineers, and manufactures contoured aluminum, titanium, and Inconel aero structure components; structural assembly products, such as winglets, engine components, and fuselage structural panels; aerodynamic systems; and metal and composite bonded structures and assemblies comprising aircraft wing spoilers, large fuselage skins, rotor blades on rotary-wing aircraft and components, flight control surfaces, engine components, ammunition handling systems, and magnetic seals. It serves commercial aircraft, military fixed-wing aircraft, military and commercial rotary-wing aircraft, and space programs, as well as industrial, medical, and other end-use markets. The company was founded in 1849 and is headquartered in Santa Ana, California.

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.