AeroVironment (NASDAQ:AVAV – Get Free Report) and Axon Enterprise (NASDAQ:AXON – Get Free Report) are both large-cap aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Profitability
This table compares AeroVironment and Axon Enterprise’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AeroVironment | -4.14% | 4.67% | 3.73% |
| Axon Enterprise | 10.05% | 4.29% | 1.95% |
Analyst Ratings
This is a breakdown of recent recommendations for AeroVironment and Axon Enterprise, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AeroVironment | 1 | 1 | 18 | 3 | 3.00 |
| Axon Enterprise | 0 | 4 | 15 | 0 | 2.79 |
Valuation & Earnings
This table compares AeroVironment and Axon Enterprise”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AeroVironment | $820.63 million | 16.12 | $43.62 million | ($0.64) | -413.98 |
| Axon Enterprise | $2.08 billion | 20.38 | $377.03 million | $3.16 | 170.17 |
Axon Enterprise has higher revenue and earnings than AeroVironment. AeroVironment 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
86.4% of AeroVironment shares are owned by institutional investors. Comparatively, 79.1% of Axon Enterprise shares are owned by institutional investors. 0.8% of AeroVironment shares are owned by company insiders. Comparatively, 5.7% 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 company is poised for long-term growth.
Risk & Volatility
AeroVironment has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Axon Enterprise has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.
Summary
Axon Enterprise beats AeroVironment on 9 of the 15 factors compared between the two stocks.
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.
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.
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