Astronics (OTCMKTS:ATROB – Get Free Report) and Leonardo DRS (NASDAQ:DRS – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.
Analyst Ratings
This is a summary of current ratings and price targets for Astronics and Leonardo DRS, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Astronics | 0 | 0 | 0 | 0 | 0.00 |
| Leonardo DRS | 0 | 2 | 3 | 1 | 2.83 |
Leonardo DRS has a consensus price target of $53.60, indicating a potential upside of 31.70%. Given Leonardo DRS’s stronger consensus rating and higher probable upside, analysts clearly believe Leonardo DRS is more favorable than Astronics.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Astronics | 8.40% | 67.69% | 14.23% |
| Leonardo DRS | 8.52% | 12.97% | 8.29% |
Volatility and Risk
Astronics has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Leonardo DRS has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.
Earnings & Valuation
This table compares Astronics and Leonardo DRS”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Astronics | $862.13 million | 3.85 | $29.36 million | $1.70 | 45.40 |
| Leonardo DRS | $3.78 billion | 2.87 | $278.00 million | $1.19 | 34.20 |
Leonardo DRS has higher revenue and earnings than Astronics. Leonardo DRS is trading at a lower price-to-earnings ratio than Astronics, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
18.8% of Leonardo DRS shares are owned by institutional investors. 16.0% of Astronics shares are owned by company insiders. Comparatively, 0.3% of Leonardo DRS shares are owned 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.
Summary
Leonardo DRS beats Astronics on 8 of the 15 factors compared between the two stocks.
About Astronics
Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. The company operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and mass transit industries, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. Astronics Corporation was incorporated in 1968 and is headquartered in East Aurora, New York.
About Leonardo DRS
Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications including platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The IMS segment designs, develops, manufacture, and integrates power conversion, control, and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation, and logistics systems for the U.S. and allied defense customers. This segment also offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems and associated efficient, rugged, and compact power conversion, electrical actuation systems, as well as cooling technologies; and motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems. The company was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo S.p.A.
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