Reviewing Optex Systems Hldg InCorp (OPXS) and KLA-Tencor (KLAC)

Optex Systems Hldg InCorp (OTCMKTS:OPXS) and KLA-Tencor (NASDAQ:KLAC) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Insider & Institutional Ownership

92.0% of KLA-Tencor shares are owned by institutional investors. 70.1% of Optex Systems Hldg InCorp shares are owned by insiders. Comparatively, 0.2% of KLA-Tencor shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Optex Systems Hldg InCorp pays an annual dividend of $0.04 per share and has a dividend yield of 2.6%. KLA-Tencor pays an annual dividend of $3.00 per share and has a dividend yield of 3.2%. KLA-Tencor pays out 37.5% of its earnings in the form of a dividend. KLA-Tencor has increased its dividend for 8 consecutive years. KLA-Tencor is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Optex Systems Hldg InCorp has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500. Comparatively, KLA-Tencor has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Optex Systems Hldg InCorp and KLA-Tencor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Optex Systems Hldg InCorp 0 0 0 0 N/A
KLA-Tencor 0 3 10 0 2.77

KLA-Tencor has a consensus price target of $130.42, indicating a potential upside of 39.84%. Given KLA-Tencor’s higher possible upside, analysts clearly believe KLA-Tencor is more favorable than Optex Systems Hldg InCorp.

Profitability

This table compares Optex Systems Hldg InCorp and KLA-Tencor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Optex Systems Hldg InCorp 16.20% 17.47% 9.23%
KLA-Tencor 22.05% 93.99% 24.41%

Valuation and Earnings

This table compares Optex Systems Hldg InCorp and KLA-Tencor’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Optex Systems Hldg InCorp $18.54 million 0.70 -$300,000.00 N/A N/A
KLA-Tencor $4.04 billion 3.58 $802.26 million $8.00 11.66

KLA-Tencor has higher revenue and earnings than Optex Systems Hldg InCorp.

Summary

KLA-Tencor beats Optex Systems Hldg InCorp on 11 of the 14 factors compared between the two stocks.

Optex Systems Hldg InCorp Company Profile

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 electronic sighting systems; mechanical sighting systems; laser and non-laser protected plastic and glass periscopes; howitzer sighting systems; thermal day/night periscopes; ship binoculars; replacement optics; and optical assemblies and laser filters. The company also provides various periscope configurations, rifle and surveillance sights, and night vision optical assemblies; and precision optical assemblies utilizing thin film coating capabilities for optical systems and components primarily used for military purposes. 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. Optex Systems Holdings, Inc. offers its products directly to the federal government, prime contractors, and foreign governments. The company was founded in 1987 and is headquartered in Richardson, Texas. Optex Systems Holdings, Inc. is a subsidiary of Sileas Corporation.

KLA-Tencor Company Profile

KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries worldwide. The company offers chip and wafer manufacturing products, including defect inspection and review systems, metrology solutions, in situ process monitoring products, computational lithography software, and data analytics systems for chip manufacturers to manage yield throughout the semiconductor fabrication process. It also provides reticle manufacturing products, such as reticle inspection, metrology, and data analytics systems for mask shops; and packaging manufacturing products comprising standalone and cluster inspection and metrology systems that include wafer-level packaging inspection/metrology and component inspection/metrology products for various applications in the field of semiconductor packaging. In addition, the company offers compound semiconductor, power device, light emitting diode, and microelectromechanical system manufacturing products for the display market; data storage media/head manufacturing products, which comprise process control equipment, test equipment and surface profilers, and metrology and defect inspection solutions; and optical and stylus profilers, and in situ process monitoring products for general purpose/lab applications. Further, it provides refurbished systems, remanufactured systems, and enhanced and upgraded systems under the K-T Pro name; and service engineering, technical support, and knowledge management system services. The company offers its products and services for use by various bare wafer, integrated circuit, reticle, and hard disk drive manufacturers. KLA-Tencor Corporation was founded in 1975 and is headquartered in Milpitas, California.

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