Optex Systems (NASDAQ:OPXS – Get Free Report) and Nova (NASDAQ:NVMI – Get Free Report) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Optex Systems and Nova, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Optex Systems | 0 | 0 | 0 | 0 | N/A |
| Nova | 0 | 1 | 3 | 0 | 2.75 |
Nova has a consensus price target of $118.00, suggesting a potential upside of 7.62%. Given Nova’s higher possible upside, analysts plainly believe Nova is more favorable than Optex Systems.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Optex Systems | $22.38 million | 1.26 | $1.28 million | $0.25 | 16.68 |
| Nova | $570.73 million | 5.41 | $140.21 million | $4.27 | 25.68 |
Nova has higher revenue and earnings than Optex Systems. Optex Systems is trading at a lower price-to-earnings ratio than Nova, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Optex Systems has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Nova has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.
Insider and Institutional Ownership
7.2% of Optex Systems shares are owned by institutional investors. Comparatively, 76.3% of Nova shares are owned by institutional investors. 32.1% of Optex Systems shares are owned by insiders. Comparatively, 1.0% of Nova shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Optex Systems and Nova’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Optex Systems | 7.44% | 14.30% | 9.19% |
| Nova | 24.68% | 23.03% | 14.05% |
Summary
Nova beats Optex Systems on 12 of the 13 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, and commander weapon station sights; 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 operates as a subsidiary of Sileas Corporation.
About Nova
Nova Ltd. designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel, Taiwan, the United States, China, Korea, and internationally. Its product portfolio includes a set of metrology platforms for dimensional, films, and materials and chemical metrology measurements for process control for various semiconductor manufacturing process steps, including lithography, etch, chemical mechanical planarization, deposition, electrochemical plating, and advanced packaging. The company serves various sectors of the integrated circuit manufacturing industry, including logic, foundries, and memory manufacturers, as well as process equipment manufacturers. Nova Ltd. was formerly known as Nova Measuring Instruments Ltd. and changed its name to Nova Ltd. in July 2021. Nova Ltd. was incorporated in 1993 and is headquartered in Rehovot, Israel.
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