Mercury Systems (NASDAQ:MRCY – Get Free Report) and AerSale (NASDAQ:ASLE – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.
Valuation & Earnings
This table compares Mercury Systems and AerSale”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mercury Systems | $983.62 million | 4.63 | -$29.67 million | ($0.50) | -149.74 |
| AerSale | $335.29 million | 0.66 | $8.57 million | ($0.08) | -58.38 |
AerSale has lower revenue, but higher earnings than Mercury Systems. Mercury Systems is trading at a lower price-to-earnings ratio than AerSale, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Mercury Systems has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, AerSale has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.
Profitability
This table compares Mercury Systems and AerSale’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mercury Systems | -3.02% | 1.29% | 0.78% |
| AerSale | -1.23% | -0.27% | -0.17% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Mercury Systems and AerSale, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mercury Systems | 2 | 4 | 6 | 2 | 2.57 |
| AerSale | 1 | 4 | 0 | 0 | 1.80 |
Mercury Systems presently has a consensus target price of $108.55, indicating a potential upside of 44.98%. AerSale has a consensus target price of $6.83, indicating a potential upside of 46.32%. Given AerSale’s higher possible upside, analysts plainly believe AerSale is more favorable than Mercury Systems.
Institutional & Insider Ownership
96.0% of Mercury Systems shares are held by institutional investors. Comparatively, 69.5% of AerSale shares are held by institutional investors. 1.0% of Mercury Systems shares are held by company insiders. Comparatively, 20.1% of AerSale shares are held by company 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
Mercury Systems beats AerSale on 9 of the 15 factors compared between the two stocks.
About Mercury Systems
Mercury Systems, Inc., a technology company, manufactures and sells components, products, modules, and subsystems for aerospace and defense industries in the United States, Europe, and the Asia Pacific. Its products and solutions are deployed in approximately 300 programs with 25 defense contractors and commercial aviation customers. The company offers components, including power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, monolithic microwave integrated circuits, and memory and storage devices; modules and sub-assemblies, such as embedded processing boards, switched fabrics and boards, digital receivers, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers, as well as graphics and video boards; and integrated subsystems. It also designs and develops digital radio frequency memory units for various modern electronic warfare applications; radar environment simulation and test systems for defense and intelligence applications; and signals intelligence payloads and EO/IR technologies for small UAV platforms, as well as onboard UAV processor systems for real-time wide area motion imagery. The company was formerly known as Mercury Computer Systems, Inc. and changed its name to Mercury Systems, Inc. in November 2012. The company was incorporated in 1981 and is headquartered in Andover, Massachusetts.
About AerSale
AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps). The Asset Management Solutions segment engages in the sale and lease of aircraft, engines, and airframes, as well as disassembly of these assets for component parts. The TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, heavy aircraft maintenance and modification, and component MRO, as well as end-of-life disassembly services. This segment provides aircraft modifications, cargo and tanker conversions of aircraft, and aircraft storage; and MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components. The company was founded in 2008 and is headquartered in Coral Gables, Florida.
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