Contrasting AeroVironment (AVAV) & TASER International (AAXN)

AeroVironment (NASDAQ: AVAV) and TASER International (NASDAQ:AAXN) are both small-cap aerospace companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Earnings & Valuation

This table compares AeroVironment and TASER International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AeroVironment $272.42 million 4.44 $29.48 million $0.84 61.77
TASER International $312.84 million 3.87 $33.89 million $0.32 71.60

TASER International has higher revenue and earnings than AeroVironment. AeroVironment is trading at a lower price-to-earnings ratio than TASER International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for AeroVironment and TASER International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AeroVironment 0 4 0 0 2.00
TASER International 0 3 1 0 2.25

AeroVironment presently has a consensus price target of $37.00, suggesting a potential downside of 28.70%. TASER International has a consensus price target of $27.50, suggesting a potential upside of 20.03%. Given TASER International’s stronger consensus rating and higher possible upside, analysts plainly believe TASER International is more favorable than AeroVironment.

Volatility & Risk

AeroVironment has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, TASER International has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Profitability

This table compares AeroVironment and TASER International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AeroVironment 7.22% 5.40% 4.83%
TASER International 5.45% 10.47% 5.60%

Insider and Institutional Ownership

77.6% of AeroVironment shares are held by institutional investors. Comparatively, 95.7% of TASER International shares are held by institutional investors. 11.0% of AeroVironment shares are held by company insiders. Comparatively, 3.7% of TASER International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

TASER International beats AeroVironment on 9 of the 14 factors compared between the two stocks.

About AeroVironment

AeroVironment, Inc. designs, develops, produces, supports and operates a portfolio of products and services for government agencies, businesses and consumers. The Company operates through two segments: Unmanned Aircraft Systems (UAS), which focuses primarily on the design, development, production, support and operation of UAS and tactical missile systems that provide situational awareness, multi-band communications, force protection and other mission effects, and Efficient Energy Systems (EES), which focuses primarily on the design, development, production, marketing, support and operation of electric energy systems. The Company supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense (DoD). The Company also supplies charging systems and services for electric vehicles (EVs), and power cycling and test systems to commercial, consumer and government customers.

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.

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