Heico (NYSE:HEI – Get Free Report) and Archer Aviation (NYSE:ACHR – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.
Volatility and Risk
Heico has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Archer Aviation has a beta of 3.23, indicating that its stock price is 223% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Heico and Archer Aviation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Heico | 0 | 4 | 9 | 3 | 2.94 |
| Archer Aviation | 1 | 3 | 5 | 0 | 2.44 |
Insider and Institutional Ownership
27.1% of Heico shares are owned by institutional investors. Comparatively, 59.3% of Archer Aviation shares are owned by institutional investors. 4.9% of Heico shares are owned by insiders. Comparatively, 5.6% of Archer Aviation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Heico and Archer Aviation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Heico | 16.38% | 18.00% | 9.15% |
| Archer Aviation | N/A | -40.74% | -35.93% |
Earnings and Valuation
This table compares Heico and Archer Aviation”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Heico | $4.49 billion | 10.14 | $690.39 million | $6.01 | 54.18 |
| Archer Aviation | $300,000.00 | 14,681.71 | -$618.20 million | ($1.08) | -5.30 |
Heico has higher revenue and earnings than Archer Aviation. Archer Aviation is trading at a lower price-to-earnings ratio than Heico, indicating that it is currently the more affordable of the two stocks.
Summary
Heico beats Archer Aviation on 10 of the 15 factors compared between the two stocks.
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. Its 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, and other instruments utilized on military aircraft. The company's 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 frequency (RF) interference shielding and suppression filters; power conversion and interface; interconnection devices; and underwater locator beacons and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; memory products and specialty semiconductors; harsh environment connectivity products and custom molded cable assemblies; RF and microwave products; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems and airborne antennas; nuclear radiation detectors; silicone products; power amplifiers; ceramic-to-metal feedthroughs and connectors; technical surveillance countermeasures equipment; RF receivers and sources; embedded computing solutions; test sockets and adapters; and radiation assurance services. The company was incorporated in 1957 and is headquartered in Hollywood, Florida.
About Archer Aviation
Archer Aviation Inc., together with its subsidiaries, engages in designs, develops, and operates electric vertical takeoff and landing aircraft for use in urban air mobility. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. The company is headquartered in San Jose, California.
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