Head-To-Head Analysis: American Defense Systems (OTCMKTS:ADFS) vs. BWX Technologies (NYSE:BWXT)

American Defense Systems (OTCMKTS:ADFS) and BWX Technologies (NYSE:BWXT) are both aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider & Institutional Ownership

94.4% of BWX Technologies shares are held by institutional investors. 19.3% of American Defense Systems shares are held by company insiders. Comparatively, 0.5% of BWX Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for American Defense Systems and BWX Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Defense Systems	0	0	0	0	0.00
BWX Technologies	0	5	5	3	2.85

BWX Technologies has a consensus price target of $199.20, indicating a potential downside of 3.46%. Given American Defense Systems’ higher probable upside, analysts clearly believe American Defense Systems is more favorable than BWX Technologies.

Profitability

This table compares American Defense Systems and BWX Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Defense Systems	N/A	N/A	N/A
BWX Technologies	10.04%	30.70%	10.55%

Volatility & Risk

American Defense Systems has a beta of 9.86, indicating that its share price is 886% more volatile than the S&P 500. Comparatively, BWX Technologies has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Earnings and Valuation

This table compares American Defense Systems and BWX Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Defense Systems	N/A	N/A	N/A	N/A	N/A
BWX Technologies	$2.70 billion	6.98	$281.94 million	$3.33	61.97

BWX Technologies has higher revenue and earnings than American Defense Systems.

Summary

BWX Technologies beats American Defense Systems on 8 of the 11 factors compared between the two stocks.

About American Defense Systems

American Defense Systems, Inc., together with its subsidiaries, engages in the design and supply of transparent and opaque armor solutions for military and commercial applications. It offers crew protection kits that provide armor protection of operator compartments; VistaSteel transparent armor, a laminated glass that provides defensive barrier to protect against firearms, physical attack, and explosive blasts; VistaSteel opaque armors; lightweight armor systems; and VistaGuard windows, which are forced entry blast resistant windows, window frames, and transparent armor assemblies used to mitigate forced entry, ballistic, and terrorist threats in high visibility targets. The company also provides portable transparent ballistic shield, a bullet-resistant transparent mobile shield; heated ballistic ship windows; and hardware products, such as hinges, rotary and slam latches, combat locks, and egress windows. Its armor solutions for construction equipment, and tactical and non-tactical transport vehicles are designed to protect their occupants from landmines, hostile fire, and improvised explosive devices. In addition, the company offers engineering and consulting services; and develops and installs detention and security hardware, entry control and monitoring systems, intrusion detection systems, and security glass. Its products are used in transport and fighting vehicles, construction equipment, sea craft, and various fixed structures, which require ballistic and blast attenuation. American Defense Systems, Inc. serves various branches of the United States military, including the United States Department of Defense; and other United States government, law enforcement, and correctional agencies, as well as private sector customers. The company was founded in 1994 and is headquartered in Lillington, North Carolina.

About BWX Technologies

BWX Technologies, Inc., together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.