Reviewing Optex Systems (NASDAQ:OPXS) & American Defense Systems (OTCMKTS:ADFS)

Optex Systems (NASDAQ:OPXS) and American Defense Systems (OTCMKTS:ADFS) are both aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for Optex Systems and American Defense Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Optex Systems	0	1	0	1	3.00
American Defense Systems	0	0	0	0	0.00

Given American Defense Systems’ higher probable upside, analysts plainly believe American Defense Systems is more favorable than Optex Systems.

Insider & Institutional Ownership

19.1% of Optex Systems shares are held by institutional investors. 27.7% of Optex Systems shares are held by insiders. Comparatively, 19.3% of American Defense Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Optex Systems has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, American Defense Systems has a beta of 9.93, suggesting that its stock price is 893% more volatile than the S&P 500.

Earnings & Valuation

This table compares Optex Systems and American Defense Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Optex Systems	$41.34 million	1.93	$5.15 million	$0.66	17.39
American Defense Systems	N/A	N/A	N/A	N/A	N/A

Optex Systems has higher revenue and earnings than American Defense Systems.

Profitability

This table compares Optex Systems and American Defense Systems’ 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%
American Defense Systems	N/A	N/A	N/A

Summary

Optex Systems beats American Defense Systems on 8 of the 10 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 American Defense Systems

American Defense Systems, Inc., together with its subsidiaries, engages in the design and supply of transparent and opaque armor solutions for military and commercial applications. It offers crew protection kits that provide armor protection of operator compartments; VistaSteel transparent armor, a laminated glass that provides defensive barrier to protect against firearms, physical attack, and explosive blasts; VistaSteel opaque armors; lightweight armor systems; and VistaGuard windows, which are forced entry blast resistant windows, window frames, and transparent armor assemblies used to mitigate forced entry, ballistic, and terrorist threats in high visibility targets. The company also provides portable transparent ballistic shield, a bullet-resistant transparent mobile shield; heated ballistic ship windows; and hardware products, such as hinges, rotary and slam latches, combat locks, and egress windows. Its armor solutions for construction equipment, and tactical and non-tactical transport vehicles are designed to protect their occupants from landmines, hostile fire, and improvised explosive devices. In addition, the company offers engineering and consulting services; and develops and installs detention and security hardware, entry control and monitoring systems, intrusion detection systems, and security glass. Its products are used in transport and fighting vehicles, construction equipment, sea craft, and various fixed structures, which require ballistic and blast attenuation. American Defense Systems, Inc. serves various branches of the United States military, including the United States Department of Defense; and other United States government, law enforcement, and correctional agencies, as well as private sector customers. The company was founded in 1994 and is headquartered in Lillington, North Carolina.