Head-To-Head Survey: Leonardo DRS (NASDAQ:DRS) vs. FTAI Aviation (NASDAQ:FTAI)

Leonardo DRS (NASDAQ:DRS) and FTAI Aviation (NASDAQ:FTAI) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Earnings and Valuation

This table compares Leonardo DRS and FTAI Aviation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leonardo DRS	$3.65 billion	2.69	$278.00 million	$1.36	27.08
FTAI Aviation	$3.42 billion	5.72	$501.06 million	$4.93	38.82

FTAI Aviation has lower revenue, but higher earnings than Leonardo DRS. Leonardo DRS is trading at a lower price-to-earnings ratio than FTAI Aviation, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

18.8% of Leonardo DRS shares are held by institutional investors. Comparatively, 89.0% of FTAI Aviation shares are held by institutional investors. 0.3% of Leonardo DRS shares are held by company insiders. Comparatively, 1.4% of FTAI Aviation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Leonardo DRS pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. FTAI Aviation pays an annual dividend of $2.00 per share and has a dividend yield of 1.0%. Leonardo DRS pays out 26.5% of its earnings in the form of a dividend. FTAI Aviation pays out 40.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of recent recommendations for Leonardo DRS and FTAI Aviation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leonardo DRS	0	2	5	3	3.10
FTAI Aviation	0	2	8	0	2.80

Leonardo DRS presently has a consensus price target of $51.50, indicating a potential upside of 39.83%. FTAI Aviation has a consensus price target of $304.38, indicating a potential upside of 59.04%. Given FTAI Aviation’s higher probable upside, analysts plainly believe FTAI Aviation is more favorable than Leonardo DRS.

Volatility and Risk

Leonardo DRS has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, FTAI Aviation has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Profitability

This table compares Leonardo DRS and FTAI Aviation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leonardo DRS	9.40%	14.33%	9.29%
FTAI Aviation	15.46%	132.04%	11.63%

Summary

FTAI Aviation beats Leonardo DRS on 13 of the 17 factors compared between the two stocks.

About Leonardo DRS

Leonardo DRS, Inc. is a U.S.-based defense technology company and a subsidiary of the Italian aerospace and defense group Leonardo S.p.A. It develops and supplies advanced products and services for the U.S. military and other government and commercial customers. The company’s offerings include naval power and propulsion systems, combat and mission systems, electro-optical and infrared sensors, electronic warfare and communications equipment, and computing and networking technologies. Its products support operations across maritime, land, air and space domains.

About FTAI Aviation

FTAI Aviation owns and manages a portfolio of commercial jet engines and aircraft, which it leases to airlines and other aviation customers around the world. Its business focuses on mid-life equipment, providing customers with access to engines and aircraft without requiring them to own those assets outright. The company also supports its leasing operations with maintenance, repair and overhaul services, as well as the sale and exchange of engine modules and parts. Its work is particularly focused on the CFM56 and V2500 engine families, which are widely used on commercial aircraft.