Which Aerospace Stock Stands Out: Astronics or Heico?

Rising global air passenger traffic is driving growth in aircraft fleet sizes, while an ageing aircraft base is increasing demand for aftermarket services. These factors are supporting stronger demand for aerospace service stocks such as Astronics Corporation ATRO and HEICO Corporation HEI. At the same time, higher global defense spending, driven by ongoing geopolitical tensions, is boosting demand for advanced avionics, electronics and power systems used in military aircraft supplied by these companies.Overall, fleet expansion, defense modernization and continued technological innovation remain key growth drivers for aerospace services providers like ATRO and HEI.Astronics focuses on developing advanced electrical power systems, lighting, connectivity solutions and cabin electronics for both commercial and military customers. HEICO, in contrast, is one of the largest independent manufacturers of aerospace parts worldwide and a major supplier of jet engine and aircraft components.As trends such as aircraft electrification, digitalization and global fleet growth continue to gain momentum, investors are left with an important question: which of these two aerospace companies is better positioned for long-term stability and returns? A closer review of ATRO’s and HEI’s fundamentals can help assess which stock offers stronger upside potential.Tailwinds for ATROATRO’s recent performance has been supported by solid quarterly results and targeted acquisitions, which have helped maintain investor confidence. In November, the company reported its third-quarter 2025 results, posting revenue growth of 3.8% and a 44% increase in net adjusted earnings compared with the year-ago period.Astronics continues to benefit from improving conditions in both defense and commercial aerospace markets. During the third quarter of 2025, its Aerospace segment generated sales of $192.7 million, up nearly 8.5% year over year. This growth was driven by higher demand for cabin power products from airlines and increased orders for lighting and safety products from military customers.In October 2025, Astronics further expanded its aviation portfolio with the acquisition of Buhler Motor Aviation (“BMA”), a Germany-based manufacturer of aircraft seat actuation systems. BMA produces actuators, electronics, control panels, pneumatic systems and lighting solutions.The acquisition strengthens Astronics’ existing seat actuation offerings and adds technical expertise along with established product designs. BMA will work closely with Astronics’ PGA subsidiary to enhance seat actuation solutions and support future innovation, reinforcing the company’s position in commercial aerospace and supporting steady growth in this niche segment.Tailwinds for HEIHEI’s recent performance has been supported by solid quarterly results and targeted acquisitions, which have helped maintain investor confidence. In December, the company reported its fourth-quarter fiscal 2025 results, posting revenue growth of 19.3% and a 34.3% increase in net earnings per share (EPS) compared with the year-ago period.In December 2025, HEICO announced that its Flight Support Group subsidiary, Wencor Group, entered into an agreement to acquire EthosEnergy Accessories and Components (Ethos A&C). The transaction is subject to regulatory approvals and customary closing conditions, with completion expected in the first quarter of fiscal 2026.Ethos A&C specializes in the repair of a wide range of aircraft engine accessories and components, including fuel nozzles, wire harnesses, starters, valves, plenum assemblies, air diffusers and engine parts such as blades, vanes and seals. Once completed, the acquisition is expected to strengthen HEICO’s aftermarket repair capabilities and support earnings growth, further enhancing its position in the global aviation services market.How Does the Zacks Consensus Estimate Compare for ATRO & HEI?The Zacks Consensus Estimate for ATRO’s 2025 sales and EPS implies an improvement of 7.7% and 67%, respectively, from the year-ago quarter’s reported figures. ATRO’s near-term EPS estimates have improved over the past 60 days.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for HEI’s fiscal 2026 sales and EPS implies an improvement of 8.8% and 9.8%, respectively, from the year-ago quarter’s reported figures. The stock’s fiscal 2026 and 2027 EPS estimates have improved over the past 60 days.Image Source: Zacks Investment ResearchStock Price Performance: ATRO vs. HEIIn the past year, ATRO has outperformed HEI. While ATRO’s shares surged 247.6%, HEI rose 37%.Image Source: Zacks Investment ResearchAstronics’ Valuation More Attractive Than HeicoAstronics is trading at a discount, with its forward 12-month price/earnings (P/E F12M) of 22.42X being lower than HEI’s P/E F12M of 59.68X.Image Source: Zacks Investment ResearchATRO’s ROE Better Than HEIA comparison of Return on Equity (ROE) shows that ATRO is more efficient at generating profits from its equity, with an ROE of 29.65% compared with HEI’s 17.18%.ConclusionRising global air traffic, ongoing fleet expansion and higher defense spending are expected to support steady demand for aerospace service providers such as Astronics and HEICO.While both companies are positioned to deliver solid revenue and earnings growth, Astronics stands out on valuation and profitability metrics. Its better valuation, along with a stronger ROE, makes ATRO a more attractive choice for investors seeking a balanced combination of long-term growth and value.ATRO currently sports a Zacks Rank #1 (Strong Buy) at present, while HEI carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Astronics Corporation (ATRO): Free Stock Analysis Report Heico Corporation (HEI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks