Head to Head Analysis: Heico (NYSE:HEI.A) and Rolls-Royce Holdings PLC (OTCMKTS:RYCEY)

Heico (NYSE:HEI.A) and Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) are both large-cap aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Heico and Rolls-Royce Holdings PLC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heico	0	1	0	0	2.00
Rolls-Royce Holdings PLC	0	1	0	2	3.33

Profitability

This table compares Heico and Rolls-Royce Holdings PLC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heico	14.54%	15.88%	7.76%
Rolls-Royce Holdings PLC	N/A	N/A	N/A

Valuation & Earnings

This table compares Heico and Rolls-Royce Holdings PLC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heico	$3.86 billion	9.02	$514.11 million	$4.28	58.42
Rolls-Royce Holdings PLC	$24.16 billion	4.24	$3.22 billion	N/A	N/A

Rolls-Royce Holdings PLC has higher revenue and earnings than Heico.

Volatility & Risk

Heico has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Rolls-Royce Holdings PLC has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Dividends

Heico pays an annual dividend of $0.22 per share and has a dividend yield of 0.1%. Rolls-Royce Holdings PLC pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. Heico pays out 5.1% of its earnings in the form of a dividend.

Institutional & Insider Ownership

59.0% of Heico shares are owned by institutional investors. Comparatively, 0.1% of Rolls-Royce Holdings PLC shares are owned by institutional investors. 9.8% of Heico shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Heico beats Rolls-Royce Holdings PLC on 7 of the 13 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. The company's 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, subcomponents, and other instruments utilized on military aircraft. Its 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 interference shielding and suppression filters; high-speed interface products; high voltage interconnection devices; high voltage advanced power electronics; power conversion products; and underwater locator beacons and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; three-dimensional microelectronic and stacked memory products; harsh environment connectivity products and custom molded cable assemblies; radio frequency and microwave amplifiers, transmitters, and receivers; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems; and nuclear radiation detectors. The company serves customers primarily in the aviation, defense, space, medical, telecommunications, and electronics industries. HEICO Corporation was founded in 1957 and is headquartered in Hollywood, Florida.

About Rolls-Royce Holdings PLC

Rolls-Royce Holdings plc develops and delivers complex power and propulsion solutions for air, sea, and land in the United Kingdom and internationally. The company operates through four segments: Civil Aerospace, Defence, Power Systems, and New Markets. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services. The Power Systems segment engages in the development, manufacture, marketing, and sale of integrated solutions for onsite power and propulsion under the mtu brand name. The New Markets segment develops, manufactures, and sells small modular reactor and new electrical power solutions. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom.