Leonardo DRS (NASDAQ:DRS) versus AeroVironment (NASDAQ:AVAV) Financial Comparison

Leonardo DRS (NASDAQ:DRS) and AeroVironment (NASDAQ:AVAV) are both large-cap aerospace companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Earnings & Valuation

This table compares Leonardo DRS and AeroVironment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leonardo DRS	$3.23 billion	3.74	$213.00 million	$0.93	48.82
AeroVironment	$820.63 million	19.16	$43.62 million	($0.64)	-492.02

Leonardo DRS has higher revenue and earnings than AeroVironment. AeroVironment is trading at a lower price-to-earnings ratio than Leonardo DRS, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

18.8% of Leonardo DRS shares are owned by institutional investors. Comparatively, 86.4% of AeroVironment shares are owned by institutional investors. 0.1% of Leonardo DRS shares are owned by insiders. Comparatively, 0.8% of AeroVironment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Leonardo DRS and AeroVironment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leonardo DRS	0	2	6	0	2.75
AeroVironment	0	1	16	2	3.05

Leonardo DRS currently has a consensus target price of $46.75, indicating a potential upside of 2.97%. AeroVironment has a consensus target price of $304.69, indicating a potential downside of 3.24%. Given Leonardo DRS’s higher possible upside, equities research analysts plainly believe Leonardo DRS is more favorable than AeroVironment.

Profitability

This table compares Leonardo DRS and AeroVironment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leonardo DRS	7.31%	11.02%	6.93%
AeroVironment	-4.14%	4.67%	3.73%

Risk & Volatility

Leonardo DRS has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, AeroVironment has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Summary

Leonardo DRS beats AeroVironment on 8 of the 15 factors compared between the two stocks.

About Leonardo DRS

Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications including platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The IMS segment designs, develops, manufacture, and integrates power conversion, control, and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation, and logistics systems for the U.S. and allied defense customers. This segment also offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems and associated efficient, rugged, and compact power conversion, electrical actuation systems, as well as cooling technologies; and motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems. The company was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo S.p.A.

About AeroVironment

AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments. The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, the company offers small UAS products, including training, spare parts, product repair, product replacement, and the customer contracted operation. Further, it develops high-altitude pseudo-satellite UAS systems. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.