Heico Corporation (NYSE:HEI.A) has emerged as a significant player in the aerospace and defense industry, but how does it measure up against its competitors? A recent financial survey provides a comprehensive comparison of Heico’s profitability, dividends, valuation, and other critical metrics against 46 similar public companies in the sector.
Dividend Performance
Heico offers an annual dividend of $0.24 per share, resulting in a dividend yield of 0.1%. This payout represents 5.6% of the company’s earnings. In contrast, the average dividend yield within the aerospace and defense sector stands at 0.5%, with companies in this category distributing approximately 23.9% of their earnings as dividends. This disparity indicates that Heico prioritizes reinvestment over shareholder payouts compared to its peers.
Volatility and Risk Analysis
The company’s beta value is currently 1.1, indicating that its stock price is 10% more volatile than that of the S&P 500 index. In comparison, the average beta for Heico’s competitors is 0.98, suggesting that those firms experience slightly less volatility, making them potentially less risky investments.
Heico’s financial metrics show that it boasts higher revenue and earnings relative to its counterparts. Notably, Heico trades at a lower price-to-earnings ratio, suggesting that investors can access its shares at a more affordable rate than those of its peers.
Analyst ratings reflect a cautious outlook for Heico. According to MarketBeat.com, the aerospace and defense sector as a whole has a projected downside of 0.69%. Analysts have noted a stronger consensus rating and higher potential upside for Heico’s competitors, indicating that they foresee more favorable growth prospects in those companies.
Institutional investors hold 59.0% of Heico’s shares, while 65.1% of shares across the entire aerospace and defense sector are owned by institutional investors. Additionally, company insiders own 9.8% of Heico’s shares, compared to 8.8% of shares among its peers. High institutional ownership can signal confidence in a company’s long-term performance.
In summary, Heico outperforms its peers in eight out of fifteen evaluated factors. This performance underscores its position as a solid entity within the aerospace and defense sector, despite some areas where it lags behind its competitors.
Heico Corporation, founded in 1957 and headquartered in Hollywood, Florida, specializes in designing, manufacturing, and selling aerospace, defense, and electronic products and services. Its Flight Support Group segment offers a range of products, including jet engine and aircraft component replacement parts, while the Electronic Technologies Group provides a variety of specialized electronic equipment.
As Heico continues to navigate the competitive landscape, its focus on innovation and strategic growth will be crucial in maintaining its market position and addressing the challenges posed by its rivals.