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Astronics vs. HEICO: Which Aerospace Stock Is a Better Buy Today?
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Key Takeaways
Astronics posted a record $780.6 million backlog and $306.2 million in second-quarter bookings.
HEICO's defense backlog is rising, while Flight Support Group defense revenues grew in the upper 20% range.
HEICO trades at a lower P/B ratio and has a lower debt-to-capital ratio than Astronics.
Astronics (ATRO - Free Report) and HEICO Corporation (HEI - Free Report) give investors exposure to the aircraft components and systems market, although their businesses have different areas of emphasis. Astronics focuses on specialized technologies and systems used in commercial, business and military aircraft, while HEICO has a particularly strong presence in aerospace aftermarket parts, repairs and component distribution.
A key similarity between Astronics and HEICO is their exposure to the broader aerospace supply chain. Both companies provide specialized products and services that aircraft manufacturers, airlines and other operators need, but they approach the market differently. Astronics is more focused on engineered aircraft systems and technologies, while HEICO has a larger aftermarket-oriented business.
That difference makes ATRO versus HEI a potentially interesting aerospace stock comparison. Let’s compare the two companies’ fundamentals to assess their relative investment merits.
Factors Acting in Favor of ATRO Stock
Astronics develops and manufactures products for the aerospace and defense industries, including aircraft power systems, lighting, connectivity, inflight entertainment, interiors, structures and testing equipment. The company serves both original-equipment manufacturers and aircraft operators, giving it exposure to new aircraft production as well as retrofit and upgrade programs.
ATRO’s second-quarter 2026 results point to a strong order environment, with backlog reaching a record $780.6 million, marking the third consecutive quarter of record backlog. The company generated $306.2 million in quarterly bookings, up from $290.4 million in the first quarter, producing a 1.18 book-to-bill ratio, while trailing-12-month bookings surpassed $1.06 billion. Approximately 82% of the backlog is expected to convert into revenues over the next 12 months, providing substantial near-term revenue visibility. Test Systems also showed significant momentum, with a $44.7 million U.S. Army order initiating full-rate production of the TS-4549/T Radio Test Sets program. Management expects annual orders to remain at similar levels over the next four years.
Factors Acting in Favor of HEI Stock
HEICO is also deeply involved in aerospace components, but its business has a stronger emphasis on the aftermarket. Through its Flight Support Group, HEICO manufactures replacement parts, provides repair and overhaul services, and distributes aircraft components to commercial and military customers. This allows the company to benefit from the ongoing need to maintain and upgrade aircraft throughout their operating lives.
Management highlighted that orders and backlog related to defense have been increasing and expects this demand to continue over multiple years as customers replace and replenish stocks. The company also noted exposure to both legacy programs and newer defense technology platforms, including unmanned systems, which broadens its opportunity set. In the third quarter of fiscal 2026, Flight Support Group defense organic revenue growth was in the upper 20% range, while defense and aerospace were among the leading growth areas in Electronic Technologies Group.
How Do Zacks Estimates Compare for ATRO & HEI?
The Zacks Consensus Estimate for Astronics’ 2026 and 2027 earnings per share (EPS) indicates an increase of 64.07% and 16.3%, respectively, year over year.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HEICO’s fiscal 2026 and 2027 EPS implies an improvement of 27.55% and 13.92%, respectively, year over year.
Image Source: Zacks Investment Research
Valuation for ATRO & HEI
ATRO’s shares trade at a trailing 12-month Price/Book (P/B TTM) of 14.89X compared with HEI’s 8.43X, making HEI relatively more attractive from a valuation standpoint.
Image Source: Zacks Investment Research
Debt Position of ATRO & HEI
Currently, ATRO’s total debt-to-capital ratio is 61.02, whereas HEI’s is 33.59%.
The time-to-interest-earned ratio for Astronics and HEICO is 8.5 and 9.4, respectively. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
ATRO & HEI’s Price Performance
In the past three months, shares of Astronics and HEICO have lost 16.2% and 8.5%, respectively, compared with the industry’s decline of 17.7%.
Image Source: Zacks Investment Research
ATRO or HEI: Which Is a Better Choice Now?
Astronics serves the aerospace and defense markets with products spanning aircraft systems, connectivity, interiors, and testing equipment, serving both manufacturers and aircraft operators. ATRO continues to see strong demand, with record backlog, solid bookings, and growing momentum in its Test Systems business, supporting strong near-term revenue visibility. HEICO has a strong aerospace aftermarket business, providing replacement parts, repair services, and aircraft components for commercial and military customers. Its growing defense backlog and demand across both established and newer technologies, including unmanned systems, are supporting continued growth opportunities.
Our choice at the moment is HEICO, given its better price performance, debt management and more attractive valuation than Astronics. HEI carries a Zacks Rank #2 (Buy), while ATRO has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
Astronics vs. HEICO: Which Aerospace Stock Is a Better Buy Today?
Key Takeaways
Astronics (ATRO - Free Report) and HEICO Corporation (HEI - Free Report) give investors exposure to the aircraft components and systems market, although their businesses have different areas of emphasis. Astronics focuses on specialized technologies and systems used in commercial, business and military aircraft, while HEICO has a particularly strong presence in aerospace aftermarket parts, repairs and component distribution.
A key similarity between Astronics and HEICO is their exposure to the broader aerospace supply chain. Both companies provide specialized products and services that aircraft manufacturers, airlines and other operators need, but they approach the market differently. Astronics is more focused on engineered aircraft systems and technologies, while HEICO has a larger aftermarket-oriented business.
That difference makes ATRO versus HEI a potentially interesting aerospace stock comparison. Let’s compare the two companies’ fundamentals to assess their relative investment merits.
Factors Acting in Favor of ATRO Stock
Astronics develops and manufactures products for the aerospace and defense industries, including aircraft power systems, lighting, connectivity, inflight entertainment, interiors, structures and testing equipment. The company serves both original-equipment manufacturers and aircraft operators, giving it exposure to new aircraft production as well as retrofit and upgrade programs.
ATRO’s second-quarter 2026 results point to a strong order environment, with backlog reaching a record $780.6 million, marking the third consecutive quarter of record backlog. The company generated $306.2 million in quarterly bookings, up from $290.4 million in the first quarter, producing a 1.18 book-to-bill ratio, while trailing-12-month bookings surpassed $1.06 billion. Approximately 82% of the backlog is expected to convert into revenues over the next 12 months, providing substantial near-term revenue visibility. Test Systems also showed significant momentum, with a $44.7 million U.S. Army order initiating full-rate production of the TS-4549/T Radio Test Sets program. Management expects annual orders to remain at similar levels over the next four years.
Factors Acting in Favor of HEI Stock
HEICO is also deeply involved in aerospace components, but its business has a stronger emphasis on the aftermarket. Through its Flight Support Group, HEICO manufactures replacement parts, provides repair and overhaul services, and distributes aircraft components to commercial and military customers. This allows the company to benefit from the ongoing need to maintain and upgrade aircraft throughout their operating lives.
Management highlighted that orders and backlog related to defense have been increasing and expects this demand to continue over multiple years as customers replace and replenish stocks. The company also noted exposure to both legacy programs and newer defense technology platforms, including unmanned systems, which broadens its opportunity set. In the third quarter of fiscal 2026, Flight Support Group defense organic revenue growth was in the upper 20% range, while defense and aerospace were among the leading growth areas in Electronic Technologies Group.
How Do Zacks Estimates Compare for ATRO & HEI?
The Zacks Consensus Estimate for Astronics’ 2026 and 2027 earnings per share (EPS) indicates an increase of 64.07% and 16.3%, respectively, year over year.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HEICO’s fiscal 2026 and 2027 EPS implies an improvement of 27.55% and 13.92%, respectively, year over year.
Image Source: Zacks Investment Research
Valuation for ATRO & HEI
ATRO’s shares trade at a trailing 12-month Price/Book (P/B TTM) of 14.89X compared with HEI’s 8.43X, making HEI relatively more attractive from a valuation standpoint.
Image Source: Zacks Investment Research
Debt Position of ATRO & HEI
Currently, ATRO’s total debt-to-capital ratio is 61.02, whereas HEI’s is 33.59%.
The time-to-interest-earned ratio for Astronics and HEICO is 8.5 and 9.4, respectively. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
ATRO & HEI’s Price Performance
In the past three months, shares of Astronics and HEICO have lost 16.2% and 8.5%, respectively, compared with the industry’s decline of 17.7%.
Image Source: Zacks Investment Research
ATRO or HEI: Which Is a Better Choice Now?
Astronics serves the aerospace and defense markets with products spanning aircraft systems, connectivity, interiors, and testing equipment, serving both manufacturers and aircraft operators. ATRO continues to see strong demand, with record backlog, solid bookings, and growing momentum in its Test Systems business, supporting strong near-term revenue visibility. HEICO has a strong aerospace aftermarket business, providing replacement parts, repair services, and aircraft components for commercial and military customers. Its growing defense backlog and demand across both established and newer technologies, including unmanned systems, are supporting continued growth opportunities.
Our choice at the moment is HEICO, given its better price performance, debt management and more attractive valuation than Astronics. HEI carries a Zacks Rank #2 (Buy), while ATRO has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.