Critical Survey: Optex Systems (NASDAQ:OPXS) vs. Syntec Optics (NASDAQ:OPTX)

Optex Systems (NASDAQ:OPXS) and Syntec Optics (NASDAQ:OPTX) are both small-cap aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Valuation and Earnings

This table compares Optex Systems and Syntec Optics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Optex Systems	$25.66 million	1.93	$2.26 million	$0.52	13.88
Syntec Optics	$29.44 million	3.80	$1.98 million	N/A	N/A

Optex Systems has higher earnings, but lower revenue than Syntec Optics.

Volatility and Risk

Optex Systems has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, Syntec Optics has a beta of -0.49, meaning that its stock price is 149% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Optex Systems and Syntec Optics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Optex Systems	0	0	0	0	N/A
Syntec Optics	0	0	0	0	N/A

Institutional and Insider Ownership

19.1% of Optex Systems shares are held by institutional investors. 30.6% of Optex Systems shares are held by insiders. Comparatively, 78.0% of Syntec Optics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Optex Systems and Syntec Optics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Optex Systems	11.39%	23.33%	15.67%
Syntec Optics	N/A	12.52%	3.53%

Summary

Optex Systems beats Syntec Optics on 6 of the 9 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, commander weapon station sights, and sight assembly refurbishments; 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 is a subsidiary of Sileas Corporation.

About Syntec Optics

Syntec Optics Holdings, Inc. manufactures and supplies integrated optics for biomedical, defense and military, consumer, and other applications. It offers camera modules; tool design, design for manufacturing, optical and opto-mechanical design, and moldflow analysis; SPDT optics, such as freedom optics, microlens arrays, spheres and aspheres, diffractives, SPDT materials, and optical tooling; replicative molding, that includes polymer and glass molding, and molded production materials; thin film coating and coating curve materials; and precision machining and precision machining materials. The company also provides clean room assembly, such as opto mechanical, opto electronic, and integrated photonics; infrared optics, microlens arrays, software development, and optical metrology, and catalog optics services. In addition, it offers driverless cars, integrated photonics, robotics, sensors, VR and AR, machine vision, facial imagining, heads up display, finger print scanners, and laser scanners technology for consumers; night vision goggles, missile laser guides, biometrics, infrared and thermal imaging, ordnance optics, head mounted displays, 2D and 3D scanners, humvee lighting , laser targeting, protective domes and windows, and lidar technologies for defense and miliary; and medical diagnostic, microfluidics, surgical components and systems, and medical sensing technology for medical sectors. The company was founded in 1981 and is based in Rochester, New York.