Financial Review: Applied Energetics (AERG) & Raytheon (RTN)

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

Earnings & Valuation

This table compares Applied Energetics and Raytheon’s revenue, earnings per share 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
Raytheon $25.35 billion 2.05 $2.02 billion $7.62 23.98

Raytheon has higher revenue and earnings than Applied Energetics.

Risk & Volatility

Applied Energetics has a beta of 4.43, indicating that its share price is 343% more volatile than the S&P 500. Comparatively, Raytheon has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Applied Energetics and Raytheon, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Energetics 0 0 0 0 N/A
Raytheon 0 3 10 0 2.77

Raytheon has a consensus target price of $231.92, suggesting a potential upside of 26.91%. Given Raytheon’s higher probable upside, analysts clearly believe Raytheon is more favorable than Applied Energetics.

Profitability

This table compares Applied Energetics and Raytheon’s 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%
Raytheon 9.33% 24.43% 8.42%

Dividends

Raytheon pays an annual dividend of $3.47 per share and has a dividend yield of 1.9%. Applied Energetics does not pay a dividend. Raytheon pays out 45.5% of its earnings in the form of a dividend. Raytheon has increased its dividend for 13 consecutive years.

Insider and Institutional Ownership

73.2% of Raytheon shares are held by institutional investors. 7.6% of Applied Energetics shares are held by insiders. Comparatively, 0.2% of Raytheon shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

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

About Applied Energetics

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.

About Raytheon

Raytheon Company develops integrated products, services, and solutions for defense and other government markets worldwide. It operates through five segments: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS); and Forcepoint. The IDS segment provides integrated air and missile defense; land and sea-based radar solutions; command, control, communications, computers, cyber, and intelligence solutions; and naval combat and ship electronic systems. The IIS segment offers a range of technical and professional services, such as intelligence, surveillance and reconnaissance, navigation, DoD space and weather, cybersecurity, analytics, training, logistics, mission support, engineering, and automation and sustainment solutions; and air traffic management systems. The MS segment develops and supports a range of weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, directed energy effectors, and combat sensor solutions. The SAS segment provides electro-optical/infrared sensors, airborne radars for surveillance and fire control applications, lasers, precision guidance systems, signals intelligence systems, processors, electronic warfare systems, and communication and space-qualified systems. The Forcepoint segment develops cyber security products comprising insider threat solutions, data loss prevention, firewall technology, cross domain transfer, and cloud and on premise Web and email security products. The company serves the U.S. Department of Defense, the U.S. Intelligence Community, the U.S. Armed Forces, the Federal Aviation Administration, the National Oceanic and Atmospheric Administration, Department of Homeland Security, the National Aeronautics and Space Administration, and other international customers. Raytheon Company was founded in 1922 and is headquartered in Waltham, Massachusetts.

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