Heico (NYSE:HEI – Get Free Report) and Palladyne AI (NASDAQ:PDYN – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.
Insider and Institutional Ownership
27.1% of Heico shares are owned by institutional investors. Comparatively, 26.0% of Palladyne AI shares are owned by institutional investors. 4.9% of Heico shares are owned by insiders. Comparatively, 13.4% of Palladyne AI shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Heico and Palladyne AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Heico | 16.38% | 18.00% | 9.15% |
| Palladyne AI | -254.75% | -53.29% | -40.05% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Heico | 0 | 6 | 8 | 3 | 2.82 |
| Palladyne AI | 1 | 2 | 3 | 0 | 2.33 |
Heico presently has a consensus target price of $391.07, indicating a potential upside of 29.39%. Palladyne AI has a consensus target price of $11.00, indicating a potential upside of 114.22%. Given Palladyne AI’s higher possible upside, analysts clearly believe Palladyne AI is more favorable than Heico.
Volatility and Risk
Heico has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Palladyne AI has a beta of 3.66, indicating that its share price is 266% more volatile than the S&P 500.
Valuation and Earnings
This table compares Heico and Palladyne AI”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Heico | $4.49 billion | 9.42 | $690.39 million | $6.01 | 50.29 |
| Palladyne AI | $5.25 million | 48.26 | $10.04 million | ($0.68) | -7.55 |
Heico has higher revenue and earnings than Palladyne AI. Palladyne AI is trading at a lower price-to-earnings ratio than Heico, indicating that it is currently the more affordable of the two stocks.
Summary
Heico beats Palladyne AI on 11 of the 15 factors compared between the two stocks.
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.
About Palladyne AI
Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training. It serves customers from various industries, such as industrial manufacturing, warehousing and logistics, defense, infrastructure maintenance and repair, energy, aerospace and aviation, and others. The company was formerly known as Sarcos Technology and Robotics Corporation and changed its name to Palladyne AI Corp. in March 2024. Palladyne AI Corp. was founded in 2017 and is headquartered in Salt Lake City, Utah.
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