TASER International (NASDAQ: AAXN) and Mercury Systems (NASDAQ:MRCY) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
Institutional & Insider Ownership
95.7% of TASER International shares are held by institutional investors. Comparatively, 96.4% of Mercury Systems shares are held by institutional investors. 3.7% of TASER International shares are held by company insiders. Comparatively, 3.5% of Mercury Systems shares 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.
Earnings & Valuation
This table compares TASER International and Mercury Systems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TASER International||$312.84 million||3.73||$33.89 million||$0.32||68.97|
|Mercury Systems||$408.59 million||5.69||$77.23 million||$0.58||83.26|
Mercury Systems has higher revenue and earnings than TASER International. TASER International is trading at a lower price-to-earnings ratio than Mercury Systems, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for TASER International and Mercury Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TASER International currently has a consensus target price of $27.50, indicating a potential upside of 24.60%. Mercury Systems has a consensus target price of $42.20, indicating a potential downside of 12.61%. Given TASER International’s higher possible upside, analysts plainly believe TASER International is more favorable than Mercury Systems.
Risk & Volatility
TASER International has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Mercury Systems has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.
This table compares TASER International and Mercury Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Mercury Systems beats TASER International on 8 of the 14 factors compared between the two stocks.
About TASER International
Axon Enterprise, Inc., formerly TASER International, Inc., is engaged in development, manufacture and sale of conducted electrical weapons (CEWs) for use by law enforcement, military, corrections and private security personnel, and by private individuals for personal defense. It is also engaged in development of connected wearable on-officer cameras. It operates through two segments: the sale of CEWs, accessories, and other related products and services (the TASER Weapons segment), and the Axon business, focused on devices, wearables, applications, cloud and mobile products (the Axon segment). Its TASER Weapons product line includes TASER X26P, TASER X2, TASER C2, TASER Pulse and Replacement Cartridges. Its hardware products include Axon Body 2, Axon Flex, Axon Fleet, Axon Interview, Axon Signal and Axon Dock. Its Axon software and mobile technologies include Evidence.com, Evidence.com for Prosecutors, Evidence Sync, Axon Capture, Axon View, Axon Five, Axon Convert and Axon Detect.
About Mercury Systems
Mercury Systems, Inc. is a commercial provider of secure processing subsystems designed and made in the United States. The Company’s solutions support a range of defense and intelligence programs. Its technologies include embedded processing modules and subsystems, radio frequency (RF) and microwave multi-function assemblies, as well as subsystems, and RF and microwave components. It designs and builds RF and microwave components and subsystems for the electronic warfare (EW), signals intelligence (SIGINT) and other communications requirements and applications. It offers analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. It designs, markets and sells software and middleware environments for the development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms. It also offers solutions in mission computing, safety-critical avionics and platform management.
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