Comparing Rheinmetall (OTCMKTS:RNMBY) & Axon Enterprise (NASDAQ:AXON)

Axon Enterprise (NASDAQ:AXON) and Rheinmetall (OTCMKTS:RNMBY) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Axon Enterprise and Rheinmetall, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axon Enterprise	0	3	14	0	2.82
Rheinmetall	0	1	4	2	3.14

Axon Enterprise presently has a consensus price target of $805.71, indicating a potential upside of 26.68%. Given Axon Enterprise’s higher probable upside, analysts plainly believe Axon Enterprise is more favorable than Rheinmetall.

Profitability

This table compares Axon Enterprise and Rheinmetall’s 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%
Rheinmetall	N/A	N/A	N/A

Volatility and Risk

Axon Enterprise has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Rheinmetall has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500.

Valuation & Earnings

This table compares Axon Enterprise and Rheinmetall”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axon Enterprise	$2.56 billion	19.62	$377.03 million	$3.16	201.28
Rheinmetall	$10.55 billion	N/A	$775.87 million	$2.52	175.72

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

Insider and Institutional Ownership

79.1% of Axon Enterprise shares are owned by institutional investors. 4.4% of Axon Enterprise shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Axon Enterprise beats Rheinmetall 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 Rheinmetall

Rheinmetall AG provides mobility and security technologies worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and Trade. The Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides firepower and protection solutions, such as weapons and munition, protection systems, propellants and international projects and services. The Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, and cyberspace protection solutions, and training and simulation solutions. Its products include air defense systems; soldier systems; command, control, and reconnaissance systems; fire control systems; sensors; and simulations for the army, air force, navy, and civil applications. The Sensors and Actuators segment provides a portfolio of products comprising exhaust gas recirculation systems; throttle valves, control dampers, and exhaust flaps for electromotors; solenoid valves; actuators and valve train systems; oil, water, and vacuum pumps for passenger cars, commercial vehicles, and light and heavy-duty off-road applications; and industrial solutions. The Materials and Trade segment develops system components for the basic motors, such as engine blocks, structural components, and cylinder heads; plain bearings, and bushes; and replacement parts. It also engages in the aftermarket activities. The company was formerly known as Rheinmetall Berlin AG and changed its name to Rheinmetall AG in 1996. Rheinmetall AG was founded in 1889 and is headquartered in Düsseldorf, Germany.