Textron (TXT) Competitors

HEICO (NYSE:HEI) and Textron (NYSE:TXT) are both large-cap aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, media sentiment, analyst recommendations, community ranking, earnings and risk.

Is HEI or TXT a better dividend stock?

HEICO pays an annual dividend of $0.22 per share and has a dividend yield of 0.1%. Textron pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. HEICO pays out 5.4% of its earnings in the form of a dividend. Textron pays out 1.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. HEICO has raised its dividend for 17 consecutive years. Textron is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has preferable earnings & valuation, HEI or TXT?

Textron has higher revenue and earnings than HEICO. Textron is trading at a lower price-to-earnings ratio than HEICO, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HEICO	$3.99B	8.83	$514.11M	$4.04	62.80
Textron	$13.70B	0.87	$824M	$4.31	15.31

Do institutionals and insiders hold more shares of HEI or TXT?

27.1% of HEICO shares are held by institutional investors. Comparatively, 86.0% of Textron shares are held by institutional investors. 9.6% of HEICO shares are held by insiders. Comparatively, 1.7% of Textron shares are held by 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.

Do analysts recommend HEI or TXT?

HEICO presently has a consensus price target of $271.40, indicating a potential upside of 6.97%. Textron has a consensus price target of $92.09, indicating a potential upside of 39.60%. Given Textron's higher possible upside, analysts clearly believe Textron is more favorable than HEICO.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HEICO	0 Sell rating(s)	4 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.67
Textron	1 Sell rating(s)	4 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.45

Does the media prefer HEI or TXT?

In the previous week, Textron had 32 more articles in the media than HEICO. MarketBeat recorded 36 mentions for Textron and 4 mentions for HEICO. HEICO's average media sentiment score of 1.28 beat Textron's score of 0.93 indicating that HEICO is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
HEICO	4 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Textron	20 Very Positive mention(s)	2 Positive mention(s)	7 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility and risk, HEI or TXT?

HEICO has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Textron has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Does the MarketBeat Community believe in HEI or TXT?

Textron received 109 more outperform votes than HEICO when rated by MarketBeat users. Likewise, 67.62% of users gave Textron an outperform vote while only 67.06% of users gave HEICO an outperform vote.

Company	Underperform	Outperform
HEICO	Outperform Votes 507 67.06%	Underperform Votes 249 32.94%
Textron	Outperform Votes 616 67.62%	Underperform Votes 295 32.38%

Is HEI or TXT more profitable?

HEICO has a net margin of 13.33% compared to Textron's net margin of 6.01%. Textron's return on equity of 14.92% beat HEICO's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
HEICO	13.33%	14.63%	6.92%
Textron	6.01%	14.92%	6.30%

Summary

Textron beats HEICO on 11 of the 21 factors compared between the two stocks.