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

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

Valuation and Earnings

This table compares Elbit Systems 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
Elbit Systems	$6.83 billion	3.26	$321.14 million	$9.84	50.89
Axon Enterprise	$2.08 billion	21.54	$377.03 million	$3.16	179.87

Axon Enterprise has lower revenue, but higher earnings 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.

Insider & Institutional Ownership

17.9% of Elbit Systems shares are owned by institutional investors. Comparatively, 79.1% of Axon Enterprise shares are owned by institutional investors. 0.8% of Elbit Systems shares are owned by company insiders. Comparatively, 4.4% of Axon Enterprise shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

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

Analyst Ratings

This is a summary of current recommendations for Elbit Systems and Axon Enterprise, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elbit Systems	0	2	2	0	2.50
Axon Enterprise	0	4	14	0	2.78

Elbit Systems presently has a consensus target price of $530.00, suggesting a potential upside of 5.85%. Axon Enterprise has a consensus target price of $815.00, suggesting a potential upside of 43.39%. Given Axon Enterprise’s stronger consensus rating and higher possible upside, analysts plainly believe Axon Enterprise is more favorable than Elbit Systems.

Volatility & Risk

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

Summary

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

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.

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.