Head to Head Survey: Optex Systems (NASDAQ:OPXS) vs. AIRO Group (NASDAQ:AIRO)

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

Profitability

This table compares Optex Systems and AIRO Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Optex Systems	9.77%	17.57%	14.65%
AIRO Group	-23.86%	-3.48%	-3.32%

Insider and Institutional Ownership

19.1% of Optex Systems shares are held by institutional investors. 27.7% of Optex Systems shares are held by company insiders. Comparatively, 22.9% of AIRO Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Optex Systems and AIRO Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Optex Systems	0	2	0	1	2.67
AIRO Group	1	2	3	0	2.33

AIRO Group has a consensus target price of $16.50, indicating a potential upside of 195.96%. Given AIRO Group’s higher probable upside, analysts clearly believe AIRO Group is more favorable than Optex Systems.

Risk and Volatility

Optex Systems has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, AIRO Group has a beta of 2.2, meaning that its stock price is 120% more volatile than the S&P 500.

Earnings and Valuation

This table compares Optex Systems and AIRO Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Optex Systems	$39.80 million	1.50	$5.15 million	$0.55	15.65
AIRO Group	$90.91 million	1.94	-$4.10 million	($0.83)	-6.72

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

Summary

Optex Systems beats AIRO Group on 10 of the 15 factors compared between the two stocks.

About Optex Systems

Optex Systems Holdings, Inc. (NASDAQ: OPXS) develops and manufactures optical and electro-optical systems and assemblies for the defense and aerospace markets. The company’s products are designed primarily for military vehicles, weapon systems, and other platforms that require precision observation, aiming, and sighting capabilities. Its product offerings include periscopes, optical sighting systems, weapon sights, night-vision components, and related optical assemblies. Optex Systems also provides engineering, manufacturing, assembly, and repair services for specialized defense equipment.

About AIRO Group

AIRO Group is an aerospace and defense company that develops and supplies technologies for commercial, government and defense customers. Its businesses span unmanned aircraft systems, avionics, pilot training and electric air mobility. The company’s offerings include drones and related systems, cockpit avionics through its Aspen Avionics business, and flight-training services. Its electric-air-mobility activities include the development of electric vertical takeoff and landing aircraft through Jaunt Air Mobility.