Head to Head Survey: Park Aerospace (NYSE:PKE) and Rheinmetall (OTCMKTS:RNMBY)

Park Aerospace (NYSE:PKE) and Rheinmetall (OTCMKTS:RNMBY) are both aerospace companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Profitability

This table compares Park Aerospace and Rheinmetall’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park Aerospace	10.98%	7.60%	6.64%
Rheinmetall	N/A	N/A	N/A

Dividends

Park Aerospace pays an annual dividend of $0.50 per share and has a dividend yield of 2.6%. Rheinmetall pays an annual dividend of $1.26 per share and has a dividend yield of 0.3%. Park Aerospace pays out 147.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rheinmetall pays out 586.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Park Aerospace is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

77.8% of Park Aerospace shares are owned by institutional investors. 11.3% of Park Aerospace shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Park Aerospace and Rheinmetall”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park Aerospace	$62.03 million	6.12	$5.88 million	$0.34	56.21
Rheinmetall	$10.55 billion	N/A	N/A	$0.21	1,898.58

Park Aerospace has higher earnings, but lower revenue than Rheinmetall. Park Aerospace is trading at a lower price-to-earnings ratio than Rheinmetall, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Park Aerospace has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Rheinmetall has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Park Aerospace and Rheinmetall, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park Aerospace	0	0	0	0	0.00
Rheinmetall	0	0	0	2	4.00

Summary

Park Aerospace beats Rheinmetall on 9 of the 13 factors compared between the two stocks.

About Park Aerospace

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.

About Rheinmetall

Rheinmetall AG provides mobility and security technologies worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and Trade. The Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides firepower and protection solutions, such as weapons and munition, protection systems, propellants and international projects and services. The Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, and cyberspace protection solutions, and training and simulation solutions. Its products include air defense systems; soldier systems; command, control, and reconnaissance systems; fire control systems; sensors; and simulations for the army, air force, navy, and civil applications. The Sensors and Actuators segment provides a portfolio of products comprising exhaust gas recirculation systems; throttle valves, control dampers, and exhaust flaps for electromotors; solenoid valves; actuators and valve train systems; oil, water, and vacuum pumps for passenger cars, commercial vehicles, and light and heavy-duty off-road applications; and industrial solutions. The Materials and Trade segment develops system components for the basic motors, such as engine blocks, structural components, and cylinder heads; plain bearings, and bushes; and replacement parts. It also engages in the aftermarket activities. The company was formerly known as Rheinmetall Berlin AG and changed its name to Rheinmetall AG in 1996. Rheinmetall AG was founded in 1889 and is headquartered in Düsseldorf, Germany.