Critical Contrast: Applied Energetics (AERG) & Harris (HRS)

Applied Energetics (OTCMKTS:AERG) and Harris (NYSE:HRS) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Institutional and Insider Ownership

85.7% of Harris shares are held by institutional investors. 7.6% of Applied Energetics shares are held by insiders. Comparatively, 2.5% of Harris shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Applied Energetics and Harris, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Energetics 0 0 0 0 N/A
Harris 0 2 6 0 2.75

Harris has a consensus target price of $184.38, suggesting a potential upside of 25.40%. Given Harris’ higher probable upside, analysts clearly believe Harris is more favorable than Applied Energetics.

Profitability

This table compares Applied Energetics and Harris’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Applied Energetics N/A N/A -643.35%
Harris 12.20% 26.39% 8.45%

Valuation & Earnings

This table compares Applied Energetics and Harris’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Applied Energetics N/A N/A -$790,000.00 N/A N/A
Harris $6.18 billion 2.80 $718.00 million $6.50 22.62

Harris has higher revenue and earnings than Applied Energetics.

Dividends

Harris pays an annual dividend of $2.74 per share and has a dividend yield of 1.9%. Applied Energetics does not pay a dividend. Harris pays out 42.2% of its earnings in the form of a dividend. Harris has raised its dividend for 16 consecutive years.

Risk & Volatility

Applied Energetics has a beta of 4.42, suggesting that its share price is 342% more volatile than the S&P 500. Comparatively, Harris has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Summary

Harris beats Applied Energetics on 10 of the 13 factors compared between the two stocks.

Applied Energetics Company Profile

Applied Energetics, Inc. engages in the development of ultra-short pulse lasers, laser guided energy, and direct discharge electrical products for military and commercial applications worldwide. It also offers high voltage electronics, optical systems, and integrated guided energy products. The company was founded in 1990 and is based in Tucson, Arizona.

Harris Company Profile

Harris Corporation provides technology-based solutions that solve government and commercial customers' mission-critical challenges in the United States and internationally. The company operates in three segments: Communication Systems, Electronic Systems, and Space and Intelligence Systems. It designs, develops, and manufactures radio communications products and systems, including single channel ground and airborne radio systems, multiband manpack and handheld radios, multi-channel manpack and airborne radios, and single-channel airborne radios, as well as wideband rifleman team, ground, and high frequency manpack radios. The company also offers vision-enhancing products; wireless communications systems; and Internet protocol based voice and data communications systems, as well as single-band land mobile radio terminals and multiband radios comprising a handheld radio and a full-spectrum mobile radio for vehicles. In addition, it provides electronic warfare, avionics, command, control, communications, computers, intelligence, surveillance, and reconnaissance solutions for defense and classified customers; and mission-critical communication systems for civil and military aviation and other customers. Further, the company offers intelligence, space protection, geospatial, earth observation, exploration, positioning, navigation and timing, and environmental solutions using advanced sensors, antennas, and payloads, as well as ground processing and information analytics for national security, defense, civil and commercial customers. Harris Corporation was founded in 1895 and is headquartered in Melbourne, Florida.

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