Astrotech (NASDAQ:ASTC – Get Free Report) and Elbit Systems (NASDAQ:ESLT – Get Free Report) are both aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Risk and Volatility
Astrotech has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Elbit Systems has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.
Profitability
This table compares Astrotech and Elbit Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Astrotech | -1,163.89% | -68.53% | -57.30% |
| Elbit Systems | 6.73% | 15.53% | 4.94% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Astrotech | $1.20 million | 6.82 | -$13.85 million | ($8.34) | -0.56 |
| Elbit Systems | $7.94 billion | 4.57 | $534.34 million | $11.36 | 71.90 |
Elbit Systems has higher revenue and earnings than Astrotech. Astrotech is trading at a lower price-to-earnings ratio than Elbit Systems, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
24.4% of Astrotech shares are owned by institutional investors. Comparatively, 17.9% of Elbit Systems shares are owned by institutional investors. 16.8% of Astrotech shares are owned by insiders. Comparatively, 0.8% of Elbit Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Astrotech and Elbit Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Astrotech | 1 | 0 | 0 | 0 | 1.00 |
| Elbit Systems | 0 | 3 | 2 | 0 | 2.40 |
Elbit Systems has a consensus price target of $550.33, suggesting a potential downside of 32.62%. Given Elbit Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Elbit Systems is more favorable than Astrotech.
Summary
Elbit Systems beats Astrotech on 10 of the 14 factors compared between the two stocks.
About Astrotech
Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AgLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person's breath. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.
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.
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