Head to Head Comparison: Optex Systems (NASDAQ:OPXS) and Curtiss-Wright (NYSE:CW)

Optex Systems (NASDAQ:OPXS) and Curtiss-Wright (NYSE:CW) are both aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

19.1% of Optex Systems shares are held by institutional investors. Comparatively, 82.7% of Curtiss-Wright shares are held by institutional investors. 27.7% of Optex Systems shares are held by company insiders. Comparatively, 0.6% of Curtiss-Wright shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Optex Systems and Curtiss-Wright”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Optex Systems	$41.34 million	2.15	$5.15 million	$0.66	19.38
Curtiss-Wright	$3.50 billion	7.39	$484.23 million	$12.87	54.45

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

Volatility & Risk

Optex Systems has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Curtiss-Wright has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Optex Systems and Curtiss-Wright’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Optex Systems	10.75%	22.12%	17.74%
Curtiss-Wright	13.84%	19.28%	9.73%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Optex Systems and Curtiss-Wright, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Optex Systems	0	1	0	0	2.00
Curtiss-Wright	0	3	4	0	2.57

Curtiss-Wright has a consensus price target of $664.83, indicating a potential downside of 5.13%. Given Curtiss-Wright’s stronger consensus rating and higher possible upside, analysts plainly believe Curtiss-Wright is more favorable than Optex Systems.

Summary

Curtiss-Wright beats Optex Systems on 11 of the 14 factors compared between the two stocks.

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.

About Curtiss-Wright

Curtiss-Wright Corporation, together with its subsidiaries, provides engineered products, solutions, and services mainly to aerospace and defense, commercial power, process, and industrial markets worldwide. It operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. The Aerospace & Industrial segment offers industrial and specialty vehicle products, such as power management electronics, traction inverters, transmission shifters, and control systems; sensors, controls, and electro-mechanical actuation components used on commercial and military aircraft; and surface technology services including shot peening, laser peening, and engineered coatings. The Defense Electronics segment provides commercial off-the-shelf embedded computing board-level modules and processing equipment, data acquisition and flight test instrumentation equipment, integrated subsystems, instrumentation and control systems, tactical communications solutions; and electronic stabilization products, and weapons handling systems; avionics and electronics; flight test equipment; and aircraft data management solutions. The Naval & Power segment offers main coolant pumps, power-dense compact motors, generators, steam turbines, valves, and secondary propulsion systems; energy absorbers, retractable hook cable systems, net-stanchion systems and mobile systems to support fixed land-based arresting systems; hardware, valves, fastening systems, specialized containment doors, airlock hatches, and spent fuel management products; reactor coolant pumps and control rod drive mechanisms for commercial nuclear power plants, as well as various nuclear reactor technologies. This segment furnishes severe-service valve technologies and services, heat exchanger repair, and piping test and isolation products, and offers ship repair and maintenance for the U.S. navy. Curtiss-Wright Corporation was incorporated in 1929 and is headquartered in Davidson, North Carolina.