Spirit AeroSystems (NYSE:SPR) and Park Electrochemical (NYSE:PKE) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Insider and Institutional Ownership

95.8% of Spirit AeroSystems shares are held by institutional investors. Comparatively, 82.9% of Park Electrochemical shares are held by institutional investors. 0.8% of Spirit AeroSystems shares are held by company insiders. Comparatively, 8.4% of Park Electrochemical shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Spirit AeroSystems and Park Electrochemical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirit AeroSystems 1 12 3 0 2.13
Park Electrochemical 0 0 0 0 N/A

Spirit AeroSystems currently has a consensus price target of $89.35, suggesting a potential upside of 37.15%. Given Spirit AeroSystems’ higher probable upside, research analysts plainly believe Spirit AeroSystems is more favorable than Park Electrochemical.

Dividends

Spirit AeroSystems pays an annual dividend of $0.48 per share and has a dividend yield of 0.7%. Park Electrochemical pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Spirit AeroSystems pays out 7.7% of its earnings in the form of a dividend. Spirit AeroSystems has increased its dividend for 2 consecutive years.

Risk and Volatility

Spirit AeroSystems has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Park Electrochemical has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Valuation & Earnings

This table compares Spirit AeroSystems and Park Electrochemical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spirit AeroSystems $7.22 billion 0.93 $617.00 million $6.26 10.41
Park Electrochemical $51.12 million 6.31 $113.54 million N/A N/A

Spirit AeroSystems has higher revenue and earnings than Park Electrochemical.

Profitability

This table compares Spirit AeroSystems and Park Electrochemical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spirit AeroSystems 8.27% 49.21% 11.10%
Park Electrochemical 181.69% 6.96% 5.97%

Summary

Spirit AeroSystems beats Park Electrochemical on 10 of the 15 factors compared between the two stocks.

Spirit AeroSystems Company Profile

Spirit AeroSystems Holdings, Inc. designs, manufactures, and supplies commercial aero structures in the United States and internationally. The company operates in three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The Fuselage Systems segment develops, produces, and markets forward, mid, and rear fuselage sections and systems primarily to aircraft original equipment manufacturers (OEMs); and related spares, as well as maintenance, repairs, and overhaul (MRO) services. The Propulsion Systems segment offers struts/pylons; nacelles, including thrust reversers; and related engine structural components primarily to aircraft or engine OEMs, as well as related spares and MRO services. The Wing Systems provides wings and wing components, such as flight control surfaces; and other miscellaneous structural parts primarily to aircraft OEMs, as well as related spares and MRO services. Spirit AeroSystems Holdings, Inc. also offers low observables comprising radar absorbent and translucent materials; rotorcrafts that include forward cockpits and cabins; and other military services, such as fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.

Park Electrochemical Company Profile

Park Electrochemical Corp., through its subsidiaries, develops, manufactures, markets, and sells high-technology digital and radio frequency/microwave printed circuit material products primarily for the telecommunications and Internet infrastructure, enterprise, and military/aerospace markets. It also designs, develops, and manufactures advanced composite materials, primary and secondary structures and assemblies, and low-volume tooling products for the aerospace markets. The company's advanced electronics materials are used to fabricate complex multilayer printed circuit boards and other electronic interconnect systems, including backplanes, high speed/low loss multilayers, and high density interconnects. It markets and sells its electronics materials to independent printed circuit board fabricators, electronic manufacturing service companies, and electronic contract manufacturers, as well as electronic original equipment manufacturers in the computer, networking, telecommunications, wireless communications, aerospace, military, instrumentation, and automotive industries. The company has operations in North America, Europe, and Asia. Park Electrochemical Corp. was founded in 1954 and is headquartered in Melville, New York.

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