Head-To-Head Analysis: Park Aerospace (PKE) versus The Competition

Park Aerospace (NYSE:PKE) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its competitors? We will compare Park Aerospace to similar companies based on the strength of its profitability, valuation, institutional ownership, risk, dividends, analyst recommendations and earnings.

Institutional & Insider Ownership

77.8% of Park Aerospace shares are owned by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 7.1% of Park Aerospace shares are owned by insiders. Comparatively, 11.8% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Park Aerospace has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Park Aerospace’s competitors have a beta of 1.31, suggesting that their average share price is 31% more volatile than the S&P 500.

Profitability

This table compares Park Aerospace and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park Aerospace	18.42%	11.21%	10.25%
Park Aerospace Competitors	-278.19%	-46.46%	-4.02%

Valuation and Earnings

This table compares Park Aerospace and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Park Aerospace	$73.30 million	$11.27 million	34.35
Park Aerospace Competitors	$8.34 billion	$569.54 million	25.80

Park Aerospace’s competitors have higher revenue and earnings than Park Aerospace. Park Aerospace is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Park Aerospace and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park Aerospace	0	0	5	0	3.00
Park Aerospace Competitors	2156	8263	12769	580	2.50

Park Aerospace presently has a consensus target price of $42.50, suggesting a potential upside of 71.86%. As a group, “Aerospace & Defense” companies have a potential upside of 27.55%. Given Park Aerospace’s stronger consensus rating and higher probable upside, equities analysts plainly believe Park Aerospace is more favorable than its competitors.

Dividends

Park Aerospace pays an annual dividend of $0.50 per share and has a dividend yield of 2.0%. Park Aerospace pays out 69.4% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 38.4% of their earnings in the form of a dividend.

Summary

Park Aerospace beats its competitors on 9 of the 15 factors compared.

Park Aerospace Company Profile

Park Aerospace Corp., an aerospace company, develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the aerospace market in North America, Asia, and Europe. It offers advanced composite materials, including film adhesives and lightning strike protection materials that are used to produce primary and secondary structures for jet engines, large and regional transport aircrafts, military aircrafts, unmanned aerial vehicles, business jets, general aviation aircrafts, and rotary wing aircrafts. The company also provides specialty ablative materials for rocket motors and nozzles; and specially designed materials for radome applications. In addition, it designs and fabricates composite parts, structures and assemblies, and low volume tooling for the aerospace industry. The company was formerly known as Park Electrochemical Corp. and changed its name to Park Aerospace Corp. in July 2019. Park Aerospace Corp. was incorporated in 1954 and is based in Westbury, New York.