Head-To-Head Comparison: Leonardo DRS (DRS) & Its Peers

Leonardo DRS (NASDAQ:DRS) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it contrast to its competitors? We will compare Leonardo DRS to similar businesses based on the strength of its analyst recommendations, valuation, risk, earnings, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares Leonardo DRS and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Leonardo DRS	$3.65 billion	$278.00 million	26.86
Leonardo DRS Competitors	$8.44 billion	$569.54 million	25.86

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

Volatility & Risk

Leonardo DRS has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Leonardo DRS’s competitors have a beta of 1.31, meaning that their average share price is 31% more volatile than the S&P 500.

Dividends

Leonardo DRS pays an annual dividend of $0.36 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. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 39.1% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for Leonardo DRS and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leonardo DRS	0	2	5	3	3.10
Leonardo DRS Competitors	2157	8270	12790	581	2.50

Leonardo DRS presently has a consensus target price of $51.50, indicating a potential upside of 40.98%. As a group, “Aerospace & Defense” companies have a potential upside of 27.03%. Given Leonardo DRS’s stronger consensus rating and higher possible upside, research analysts clearly believe Leonardo DRS is more favorable than its competitors.

Profitability

This table compares Leonardo DRS and its competitors’ 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%
Leonardo DRS Competitors	-348.96%	-46.51%	-4.31%

Insider & Institutional Ownership

18.8% of Leonardo DRS shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 0.3% of Leonardo DRS shares are held by insiders. Comparatively, 11.8% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Leonardo DRS competitors beat Leonardo DRS on 8 of the 15 factors compared.

Leonardo DRS Company Profile

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.