Reviewing Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) and Heico (NYSE:HEI)

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

Volatility and Risk

Rolls-Royce Holdings PLC has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Heico has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Dividends

Rolls-Royce Holdings PLC pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. Heico pays an annual dividend of $0.24 per share and has a dividend yield of 0.1%. Heico pays out 5.6% of its earnings in the form of a dividend. Heico has raised its dividend for 17 consecutive years.

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rolls-Royce Holdings PLC	$24.16 billion	5.21	$3.22 billion	N/A	N/A
Heico	$3.86 billion	11.40	$514.11 million	$4.28	73.86

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

Insider and Institutional Ownership

0.1% of Rolls-Royce Holdings PLC shares are owned by institutional investors. Comparatively, 27.1% of Heico shares are owned by institutional investors. 9.6% of Heico shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rolls-Royce Holdings PLC	0	2	0	1	2.67
Heico	0	5	8	0	2.62

Heico has a consensus target price of $301.4545, suggesting a potential downside of 4.64%. Given Heico’s higher probable upside, analysts plainly believe Heico is more favorable than Rolls-Royce Holdings PLC.

Summary

Heico beats Rolls-Royce Holdings PLC on 9 of the 16 factors compared between the two stocks.

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.

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. Its 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, and other instruments utilized on military aircraft. The company's 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 frequency (RF) interference shielding and suppression filters; power conversion and interface; interconnection devices; and underwater locator beacons and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; memory products and specialty semiconductors; harsh environment connectivity products and custom molded cable assemblies; RF and microwave products; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems and airborne antennas; nuclear radiation detectors; silicone products; power amplifiers; ceramic-to-metal feedthroughs and connectors; technical surveillance countermeasures equipment; RF receivers and sources; embedded computing solutions; test sockets and adapters; and radiation assurance services. The company was incorporated in 1957 and is headquartered in Hollywood, Florida.