Rada Electronics Industries Limited (NASDAQ: RADA) and KVH Industries (NASDAQ:KVHI) are both small-cap aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Rada Electronics Industries Limited and KVH Industries’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rada Electronics Industries Limited $17.63 million 3.82 -$7,000.00 ($0.05) -60.80
KVH Industries $170.44 million 1.10 $8.14 million ($0.67) -16.42

KVH Industries has higher revenue and earnings than Rada Electronics Industries Limited. Rada Electronics Industries Limited is trading at a lower price-to-earnings ratio than KVH Industries, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Rada Electronics Industries Limited has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, KVH Industries has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Insider and Institutional Ownership

0.9% of Rada Electronics Industries Limited shares are held by institutional investors. Comparatively, 61.3% of KVH Industries shares are held by institutional investors. 1.0% of Rada Electronics Industries Limited shares are held by company insiders. Comparatively, 11.1% of KVH Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Rada Electronics Industries Limited and KVH Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rada Electronics Industries Limited -3.41% -6.38% -3.36%
KVH Industries -6.35% 1.85% 0.99%

Analyst Ratings

This is a breakdown of current ratings and target prices for Rada Electronics Industries Limited and KVH Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rada Electronics Industries Limited 0 0 0 0 N/A
KVH Industries 0 0 2 0 3.00

KVH Industries has a consensus price target of $9.50, suggesting a potential downside of 13.64%. Given KVH Industries’ higher possible upside, analysts plainly believe KVH Industries is more favorable than Rada Electronics Industries Limited.

Summary

KVH Industries beats Rada Electronics Industries Limited on 9 of the 12 factors compared between the two stocks.

About Rada Electronics Industries Limited

RADA Electronic Industries Ltd. is an aviation and defense company. The Company develops, manufactures and sells defense electronics, including, avionics solutions (including avionics for unmanned aerial vehicles (UAVs)), airborne data/video recording and management systems, inertial navigation systems and tactical land radars for defense forces and border protection systems. The Company’s product lines include Military avionics (Data/video recorders, core avionics for aircraft and UAVs); Inertial navigation systems (INS) for aerial and land platforms, and Tactical Radars for defense forces and border protection systems (land-based). The Company’s INS products are used by multiple combat platforms and weapon systems. The Company develops ground radars for tactical applications, such as defense forces protection and border protection. Its products are primarily sold to governmental agencies, governmental authorities and government-owned companies.

About KVH Industries

KVH Industries, Inc. is a manufacturer of solutions that provide high-speed Internet, television and voice services through satellite to mobile users at sea and on land. The Company also provides commercially licensed entertainment, including news, sports, music and movies, to commercial and leisure customers in the maritime, hotel and retail markets. It operates in two geographic segments, in the mobile communications, navigation and guidance and stabilization equipment industry. The Company develops and distributes training films and e-learning computer-based training courses to commercial maritime customers. It is also a manufacturer of navigational sensors and integrated inertial systems for defense and commercial guidance and stabilization applications. It designs, develops, manufactures and markets mobile communications products and services for the marine and land mobile markets, and navigation, guidance and stabilization products for both the commercial and defense markets.

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