Leonardo DRS (NASDAQ:DRS – Get Rating) and L3Harris Technologies (NYSE:LHX – Get Rating) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Leonardo DRS and L3Harris Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leonardo DRS | 0 | 0 | 4 | 0 | 3.00 |
| L3Harris Technologies | 0 | 8 | 6 | 0 | 2.43 |
Leonardo DRS presently has a consensus price target of $17.67, indicating a potential upside of 24.76%. L3Harris Technologies has a consensus price target of $259.46, indicating a potential upside of 31.70%. Given L3Harris Technologies’ higher probable upside, analysts clearly believe L3Harris Technologies is more favorable than Leonardo DRS.
Institutional & Insider Ownership
Earnings and Valuation
This table compares Leonardo DRS and L3Harris Technologies’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Leonardo DRS | $2.69 billion | 1.37 | $405.00 million | $2.10 | 6.74 |
| L3Harris Technologies | $17.06 billion | 2.19 | $1.06 billion | $5.47 | 36.02 |
L3Harris Technologies has higher revenue and earnings than Leonardo DRS. Leonardo DRS is trading at a lower price-to-earnings ratio than L3Harris Technologies, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Leonardo DRS has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, L3Harris Technologies has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.
Profitability
This table compares Leonardo DRS and L3Harris Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Leonardo DRS | 22.60% | 10.16% | 5.76% |
| L3Harris Technologies | 6.22% | 13.20% | 7.37% |
Summary
L3Harris Technologies beats Leonardo DRS on 10 of the 14 factors compared between the two stocks.
About Leonardo DRS
Leonardo DRS, Inc. engages in the provision of defense products and technologies. It develops and manufactures defense products for the U.S. military, intelligence agencies and allies around the world. Its broad technology portfolio focuses on advanced sensing, network computing, force protection, and electrical power and propulsion, as well as a range of key defense priorities. The company operates through two segments: Advanced Sensors & Computing, and Integrated Mission Systems. The Advanced Sensors & Computing segment has been aligned to push towards a more autonomous future. It consists of six business units, which include Airborne & Intelligence Systems, Daylight Solutions, DRS RADA Technologies, Electro-Optical & Infrared Systems, Land Electronics, and Naval Electronics. The Integrated Mission Systems segment consists of both a ground vehicle integrator and naval power and propulsion system provider. Leonardo DRS was founded by Leonard Newman and David E. Gross in 1969 and is headquartered in Arlington, VA.
About L3Harris Technologies
L3Harris Technologies, Inc. engages in the provision of defense and commercial technologies across the air, land, sea, space, and cyber domains. It operates through the following segments: Integrated Mission Systems, Space and Airborne Systems, Communication Systems, and Aviation Systems. The Integrated Mission Systems segment consists of multi-mission ISR and communication systems, integrated electrical and electronic systems for maritime platforms, and advanced electro-optical and infrared solutions. The Space and Airborne Systems segment consists of space payloads, sensors and full-mission solutions, classified intelligence and cyber defense, avionics, and electronic warfare. The Communication Systems segment consists of tactical communications, broadband communications, integrated vision solutions, and public safety. The Aviation Systems segment is composed of defense aviation products, security, detection and other commercial aviation products, air traffic management, and commercial and military pilot training. The company was founded in 1890 and is headquartered in Melbourne, FL.
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