Financial Survey: EHang (NASDAQ:EH) vs. Leonardo DRS (NASDAQ:DRS)

EHang (NASDAQ:EH) and Leonardo DRS (NASDAQ:DRS) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Insider & Institutional Ownership

94.0% of EHang shares are held by institutional investors. Comparatively, 18.8% of Leonardo DRS shares are held by institutional investors. 39.6% of EHang shares are held by insiders. Comparatively, 0.3% of Leonardo DRS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares EHang 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
EHang	$72.86 million	10.15	-$39.47 million	($0.44)	-22.36
Leonardo DRS	$3.70 billion	3.33	$278.00 million	$1.07	43.17

Leonardo DRS has higher revenue and earnings than EHang. EHang is trading at a lower price-to-earnings ratio than Leonardo DRS, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for EHang and Leonardo DRS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EHang	1	1	2	0	2.25
Leonardo DRS	0	4	3	1	2.63

EHang presently has a consensus price target of $13.00, indicating a potential upside of 32.11%. Leonardo DRS has a consensus price target of $52.00, indicating a potential upside of 12.58%. Given EHang’s higher possible upside, equities research analysts clearly believe EHang is more favorable than Leonardo DRS.

Profitability

This table compares EHang and Leonardo DRS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EHang	-44.56%	-21.16%	-11.75%
Leonardo DRS	7.85%	12.02%	7.59%

Risk and Volatility

EHang has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Leonardo DRS has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.

Summary

Leonardo DRS beats EHang on 10 of the 15 factors compared between the two stocks.

About EHang

EHang Holdings Limited operates as an autonomous aerial vehicle (AAV) technology platform company in the People's Republic of China, East Asia, West Asia, Europe, and internationally. It designs, develops, manufactures, sells, and operates AAVs, as well as their supporting systems and infrastructure for various industries and applications, including passenger transportation, logistics, smart city management, and aerial media solutions. The company was incorporated in 2014 and is headquartered in Guangzhou, the People's Republic of China.

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.