Leonardo DRS (NASDAQ:DRS – Get Rating) and Applied Energetics (OTCMKTS:AERG – Get Rating) are both aerospace companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.
Volatility and Risk
Leonardo DRS has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Applied Energetics has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.
Earnings & Valuation
This table compares Leonardo DRS and Applied Energetics’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Leonardo DRS | $2.69 billion | 1.46 | $405.00 million | $2.10 | 7.17 |
| Applied Energetics | $1.31 million | 376.95 | -$5.77 million | ($0.03) | -78.00 |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Leonardo DRS and Applied Energetics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leonardo DRS | 0 | 0 | 4 | 0 | 3.00 |
| Applied Energetics | 0 | 0 | 0 | 0 | N/A |
Leonardo DRS currently has a consensus price target of $17.67, suggesting a potential upside of 17.39%. Given Leonardo DRS’s higher possible upside, research analysts plainly believe Leonardo DRS is more favorable than Applied Energetics.
Insider & Institutional Ownership
61.4% of Leonardo DRS shares are owned by institutional investors. 1.0% of Leonardo DRS shares are owned by company insiders. Comparatively, 19.7% of Applied Energetics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Leonardo DRS and Applied Energetics’ 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% |
| Applied Energetics | N/A | -290.56% | -151.63% |
Summary
Leonardo DRS beats Applied Energetics on 10 of the 13 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 Applied Energetics
Applied Energetics, Inc. engages in the business of development and manufacturing advanced high-performance lasers, advanced optical systems, high voltage electronics, and integrated guided energy systems for prospective defense, national security, industrial, biomedical, and scientific customers. The company was founded by Stephen William McCahon and Joseph C. Hayden on June 3, 2002 and is headquartered in Tucson, AZ.
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