ISSC vs HEI

For growth investors, Innovative Solutions and Support, Inc.

(ISSC) is the stronger pick with 78. 6% revenue growth year-over-year, versus 16. 3% for HEICO Corporation (HEI). Innovative Solutions and Support, Inc. (ISSC) offers the better valuation at 24. 3x trailing P/E (27. 1x forward), making it the more compelling value choice. Analysts rate Innovative Solutions and Support, Inc. (ISSC) a "Buy" — based on 2 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Innovative Solutions and Support, Inc.

(ISSC) is the cheapest at 24. 3x versus HEICO Corporation at 59. 7x. On forward P/E, Innovative Solutions and Support, Inc. is actually cheaper at 27. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Innovative Solutions and Support, Inc. wins at 0. 76x versus HEICO Corporation's 3. 17x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Innovative Solutions and Support, Inc.

(ISSC) delivered a total return of +252. 2%, compared to +111. 0% for HEICO Corporation (HEI). Over 10 years, the gap is even starker: HEI returned +832. 4% versus ISSC's +712. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), HEICO Corporation (HEI) is the lower-risk stock at 1.

10β versus Innovative Solutions and Support, Inc. 's 2. 36β — meaning ISSC is approximately 114% more volatile than HEI relative to the S&P 500. On balance sheet safety, Innovative Solutions and Support, Inc. (ISSC) carries a lower debt/equity ratio of 37% versus 50% for HEICO Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Innovative Solutions and Support, Inc.

(ISSC) is pulling ahead at 78. 6% versus 16. 3% for HEICO Corporation (HEI). On earnings-per-share growth, the picture is similar: Innovative Solutions and Support, Inc. grew EPS 120. 0% year-over-year, compared to 33. 5% for HEICO Corporation. Over a 3-year CAGR, ISSC leads at 44. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Innovative Solutions and Support, Inc.

(ISSC) is the more profitable company, earning 18. 5% net margin versus 15. 4% for HEICO Corporation — meaning it keeps 18. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ISSC leads at 23. 8% versus 22. 7% for HEI. At the gross margin level — before operating expenses — ISSC leads at 48. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Innovative Solutions and Support, Inc. (ISSC) is the more undervalued stock at a PEG of 0. 76x versus HEICO Corporation's 3. 17x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Innovative Solutions and Support, Inc. (ISSC) trades at 27. 1x forward P/E versus 52. 1x for HEICO Corporation — 25. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HEI: 26. 8% to $371. 00.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, HEICO Corporation (HEI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

10), +832. 4% 10Y return). Innovative Solutions and Support, Inc. (ISSC) carries a higher beta of 2. 36 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (HEI: +832. 4%, ISSC: +712. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.