V2X (NYSE:VVX) & Palladyne AI (NASDAQ:PDYN) Critical Comparison

Palladyne AI (NASDAQ:PDYN) and V2X (NYSE:VVX) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Risk & Volatility

Palladyne AI has a beta of 3.79, indicating that its stock price is 279% more volatile than the S&P 500. Comparatively, V2X has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Profitability

This table compares Palladyne AI and V2X’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palladyne AI	-953.45%	-133.19%	-61.21%
V2X	1.81%	15.22%	5.06%

Insider & Institutional Ownership

26.0% of Palladyne AI shares are owned by institutional investors. Comparatively, 95.2% of V2X shares are owned by institutional investors. 13.4% of Palladyne AI shares are owned by company insiders. Comparatively, 0.9% of V2X shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Palladyne AI and V2X, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palladyne AI	1	1	1	0	2.00
V2X	2	3	5	1	2.45

Palladyne AI presently has a consensus target price of $11.50, suggesting a potential upside of 81.39%. V2X has a consensus target price of $63.11, suggesting a potential upside of 0.56%. Given Palladyne AI’s higher probable upside, equities research analysts clearly believe Palladyne AI is more favorable than V2X.

Earnings & Valuation

This table compares Palladyne AI and V2X”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palladyne AI	$7.79 million	34.21	-$72.62 million	($1.69)	-3.75
V2X	$4.32 billion	0.46	$34.68 million	$2.50	25.10

V2X has higher revenue and earnings than Palladyne AI. Palladyne AI is trading at a lower price-to-earnings ratio than V2X, indicating that it is currently the more affordable of the two stocks.

Summary

V2X beats Palladyne AI on 11 of the 15 factors compared between the two stocks.

About Palladyne AI

Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training. It serves customers from various industries, such as industrial manufacturing, warehousing and logistics, defense, infrastructure maintenance and repair, energy, aerospace and aviation, and others. The company was formerly known as Sarcos Technology and Robotics Corporation and changed its name to Palladyne AI Corp. in March 2024. Palladyne AI Corp. was founded in 2017 and is headquartered in Salt Lake City, Utah.

About V2X

V2X, Inc. provides critical mission solutions and support services to defense clients worldwide. It offers a suite of integrated solutions across the operations and logistics, aerospace, training, and technology markets to national security, defense, civilian, and international clients. The company was incorporated in 2014 and is headquartered in Mclean, Virginia.