Harris (HRS) and Applied Energetics (AERG) Financial Analysis

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

Profitability

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

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

Insider & Institutional Ownership

85.4% of Harris shares are held by institutional investors. 2.5% of Harris shares are held by company insiders. Comparatively, 7.6% of Applied Energetics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Harris and Applied Energetics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Harris $6.18 billion 2.91 $718.00 million $6.50 23.56
Applied Energetics N/A N/A -$790,000.00 N/A N/A

Harris has higher revenue and earnings than Applied Energetics.

Volatility and Risk

Harris has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Applied Energetics has a beta of 4.43, indicating that its stock price is 343% more volatile than the S&P 500.

Dividends

Harris pays an annual dividend of $2.74 per share and has a dividend yield of 1.8%. Applied Energetics does not pay a dividend. Harris pays out 42.2% of its earnings in the form of a dividend. Harris has increased its dividend for 16 consecutive years.

Analyst Ratings

This is a summary of current ratings and target prices for Harris and Applied Energetics, as reported by MarketBeat.

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

Harris currently has a consensus price target of $184.38, indicating a potential upside of 20.40%. Given Harris’ higher possible upside, equities analysts clearly believe Harris is more favorable than Applied Energetics.

Summary

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

About Harris

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.

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.

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