Rheinmetall (OTCMKTS:RNMBY – Get Free Report) and Ondas (NASDAQ:ONDS – 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 analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.
Insider & Institutional Ownership
37.7% of Ondas shares are held by institutional investors. 1.7% of Ondas shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Rheinmetall and Ondas”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rheinmetall | $11.24 billion | 5.10 | $787.45 million | $2.91 | 84.45 |
| Ondas | $50.73 million | 69.33 | -$132.02 million | ($0.07) | -86.29 |
Rheinmetall has higher revenue and earnings than Ondas. Ondas is trading at a lower price-to-earnings ratio than Rheinmetall, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Rheinmetall and Ondas, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rheinmetall | 0 | 2 | 6 | 0 | 2.75 |
| Ondas | 1 | 1 | 10 | 0 | 2.75 |
Ondas has a consensus target price of $16.89, suggesting a potential upside of 179.58%. Given Ondas’ higher possible upside, analysts clearly believe Ondas is more favorable than Rheinmetall.
Volatility & Risk
Rheinmetall has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Ondas has a beta of 2.92, indicating that its share price is 192% more volatile than the S&P 500.
Profitability
This table compares Rheinmetall and Ondas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rheinmetall | 6.45% | 22.39% | 6.94% |
| Ondas | 93.55% | -14.20% | -7.15% |
Summary
Ondas beats Rheinmetall on 7 of the 13 factors compared between the two stocks.
About Rheinmetall
Rheinmetall AG provides mobility and security technologies worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and Trade. The Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides firepower and protection solutions, such as weapons and munition, protection systems, propellants and international projects and services. The Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, and cyberspace protection solutions, and training and simulation solutions. Its products include air defense systems; soldier systems; command, control, and reconnaissance systems; fire control systems; sensors; and simulations for the army, air force, navy, and civil applications. The Sensors and Actuators segment provides a portfolio of products comprising exhaust gas recirculation systems; throttle valves, control dampers, and exhaust flaps for electromotors; solenoid valves; actuators and valve train systems; oil, water, and vacuum pumps for passenger cars, commercial vehicles, and light and heavy-duty off-road applications; and industrial solutions. The Materials and Trade segment develops system components for the basic motors, such as engine blocks, structural components, and cylinder heads; plain bearings, and bushes; and replacement parts. It also engages in the aftermarket activities. The company was formerly known as Rheinmetall Berlin AG and changed its name to Rheinmetall AG in 1996. Rheinmetall AG was founded in 1889 and is headquartered in Düsseldorf, Germany.
About Ondas
Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. It operates in two segments, Ondas Networks and Ondas Autonomous Systems. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Optimus, an AI-powered drone with imaging payloads; the Airbase, a ruggedized weatherproof base station for housing, data processing, and cloud transfer; Insightful, a secure web portal and API, which enables remote interaction with the system, data, and resulting analytics anywhere in the world; and the Raider, a counter-drone system for security and the protection of critical infrastructure, assets, and people from the threat of hostile drones. It serves users in rail, energy, mining, agriculture, public safety, critical infrastructure, and government markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.
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