Reviewing Axon Enterprise (NASDAQ:AXON) & Elbit Systems (NASDAQ:ESLT)

Axon Enterprise (NASDAQ:AXON) and Elbit Systems (NASDAQ:ESLT) are both large-cap aerospace companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

79.1% of Axon Enterprise shares are owned by institutional investors. Comparatively, 17.9% of Elbit Systems shares are owned by institutional investors. 4.4% of Axon Enterprise shares are owned by company insiders. Comparatively, 0.8% of Elbit Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Axon Enterprise has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Elbit Systems has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Axon Enterprise and Elbit Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axon Enterprise	0	4	14	0	2.78
Elbit Systems	0	3	2	0	2.40

Axon Enterprise presently has a consensus price target of $815.00, indicating a potential upside of 44.43%. Elbit Systems has a consensus price target of $530.33, indicating a potential upside of 2.93%. Given Axon Enterprise’s stronger consensus rating and higher possible upside, research analysts plainly believe Axon Enterprise is more favorable than Elbit Systems.

Earnings & Valuation

This table compares Axon Enterprise and Elbit Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axon Enterprise	$2.08 billion	21.38	$377.03 million	$3.16	178.57
Elbit Systems	$6.83 billion	3.35	$321.14 million	$9.84	52.36

Axon Enterprise has higher earnings, but lower revenue than Elbit Systems. Elbit Systems is trading at a lower price-to-earnings ratio than Axon Enterprise, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Axon Enterprise and Elbit Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axon Enterprise	10.05%	4.29%	1.95%
Elbit Systems	5.91%	15.04%	4.69%

Summary

Axon Enterprise beats Elbit Systems on 10 of the 14 factors compared between the two stocks.

About Axon Enterprise

Axon Enterprise, Inc. develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally. It operates through two segments, Software and Sensors, and TASER. The company also offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence. Its products include axon officer safety plan; taser 10, taser7, taser X26P, taser X2, taser 7 CQ, and civilian series; cameras, such as axon body, axon flex, axon fleet, axon air, axon signal sidearm, axon signal vehicle, axon interview, and axon interview portable kit; software, including axon records, evidence, standards, commander, performance, auto-transcribe, justice, investigate, respond, and justice, my90, and redaction assistant; mobile applications, and training services, as well as hardware extended warranties; and Axon docks, cartridges, and batteries. The company sells its products through its direct sales, distribution partners, online store, and third-party resellers. Axon Enterprise, Inc. has a strategic partnership with Fusus, Inc. to expand bility to aggregate live video, data, and sensor feeds. It serves law enforcement, federal, correction, fire, EMS, campus, justice healthcare, retail, private security, and personal safety industries. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. in April 2017. Axon Enterprise, Inc. was incorporated in 1993 and is headquartered in Scottsdale, Arizona.

About Elbit Systems

Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel. The company operates through Aerospace, C4I and Cyber, ISTAR and EW, Land, and Elbit Systems of America segments. It also offers military aircraft and helicopter systems; commercial aviation systems and aerostructures; unmanned aircraft systems; electro-optic, night vision, and countermeasures systems; naval systems; land vehicle systems; munitions, such as precision munitions for land, air, and sea applications; command, control, communications, computer, intelligence, surveillance and reconnaissance, and cyber systems; electronic warfare and signal intelligence systems; and other commercial activities. In addition, the company manufactures and sells data links and radio communication systems and equipment, and cyber intelligence, autonomous, and homeland security solutions. Further, it provides various electronic warfare and signal intelligence systems, and laser systems; armored vehicle and other platforms survivability and protection systems, artillery, and mortar systems, as well as provides various training and support services. Additionally, the company offers products and systems solutions to military, homeland security, medical instrumentation, and commercial aviation clients. It markets its systems and products as a prime contractor or subcontractor to various governments and companies. It also has operations in Israel, North America, Europe, Latin America, the Asia-Pacific, and internationally. The company was incorporated in 1966 and is based in Haifa, Israel.