Leonardo DRS (NASDAQ:DRS – Get Free Report) and FTAI Aviation (NASDAQ:FTAI – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.
Insider and Institutional Ownership
18.8% of Leonardo DRS shares are owned by institutional investors. Comparatively, 89.0% of FTAI Aviation shares are owned by institutional investors. 0.3% of Leonardo DRS shares are owned by insiders. Comparatively, 1.4% of FTAI Aviation shares are owned 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.
Analyst Ratings
This is a breakdown of current ratings and price targets for Leonardo DRS and FTAI Aviation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leonardo DRS | 0 | 2 | 3 | 2 | 3.00 |
| FTAI Aviation | 0 | 2 | 9 | 0 | 2.82 |
Earnings & Valuation
This table compares Leonardo DRS and FTAI Aviation”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Leonardo DRS | $3.65 billion | 2.72 | $278.00 million | $1.19 | 31.25 |
| FTAI Aviation | $2.51 billion | 7.81 | $501.06 million | $4.60 | 41.47 |
FTAI Aviation has lower revenue, but higher earnings than Leonardo DRS. Leonardo DRS is trading at a lower price-to-earnings ratio than FTAI Aviation, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Leonardo DRS and FTAI Aviation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Leonardo DRS | 8.52% | 12.97% | 8.29% |
| FTAI Aviation | 15.94% | 139.59% | 11.26% |
Dividends
Leonardo DRS pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. FTAI Aviation pays an annual dividend of $2.00 per share and has a dividend yield of 1.0%. Leonardo DRS pays out 30.3% of its earnings in the form of a dividend. FTAI Aviation pays out 43.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Volatility and Risk
Leonardo DRS has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, FTAI Aviation has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.
Summary
FTAI Aviation beats Leonardo DRS on 13 of the 17 factors compared between the two stocks.
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.
About FTAI Aviation
FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers. As of December 31, 2023, this segment owned and managed 363 aviation assets consisting of 96 commercial aircraft and 267 engines, including eight aircraft and seventeen engines that were located in Russia. The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines. The company was founded in 2011 and is headquartered in New York, New York.
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