Axon Enterprise (AXON) and Its Peers Financial Contrast

Axon Enterprise (NASDAQ:AXON) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it contrast to its peers? We will compare Axon Enterprise to related businesses based on the strength of its analyst recommendations, dividends, profitability, institutional ownership, risk, valuation and earnings.

Institutional & Insider Ownership

79.1% of Axon Enterprise shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 4.2% of Axon Enterprise shares are held by company insiders. Comparatively, 11.9% of shares of all “Aerospace & Defense” companies are held by company 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 target prices for Axon Enterprise and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axon Enterprise	0	2	14	1	2.94
Axon Enterprise Competitors	2143	8200	12667	573	2.49

Axon Enterprise presently has a consensus target price of $688.38, indicating a potential upside of 61.61%. As a group, “Aerospace & Defense” companies have a potential upside of 27.44%. Given Axon Enterprise’s stronger consensus rating and higher probable upside, analysts plainly believe Axon Enterprise is more favorable than its peers.

Volatility and Risk

Axon Enterprise has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Axon Enterprise’s peers have a beta of 1.45, indicating that their average share price is 45% more volatile than the S&P 500.

Earnings & Valuation

This table compares Axon Enterprise and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Axon Enterprise	$3.22 billion	$124.66 million	176.74
Axon Enterprise Competitors	$8.42 billion	$569.54 million	25.10

Axon Enterprise’s peers have higher revenue and earnings than Axon Enterprise. Axon Enterprise is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Axon Enterprise and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axon Enterprise	6.19%	2.84%	1.36%
Axon Enterprise Competitors	-289.63%	-50.37%	-4.39%

Summary

Axon Enterprise beats its peers on 9 of the 13 factors compared.

Axon Enterprise Company Profile

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.