Analyzing DEFSEC Technologies (DFSC) & Its Peers

DEFSEC Technologies (NASDAQ:DFSC) is one of 230 publicly-traded companies in the “Aerospace & Defense” industry, but how does it contrast to its competitors? We will compare DEFSEC Technologies to similar businesses based on the strength of its analyst recommendations, dividends, profitability, earnings, valuation, institutional ownership and risk.

Earnings and Valuation

This table compares DEFSEC Technologies and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DEFSEC Technologies	$3.53 million	-$6.88 million	-0.31
DEFSEC Technologies Competitors	$8.41 billion	$572.47 million	26.95

DEFSEC Technologies’ competitors have higher revenue and earnings than DEFSEC Technologies. DEFSEC Technologies is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares DEFSEC Technologies and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DEFSEC Technologies	-120.97%	-144.66%	-82.13%
DEFSEC Technologies Competitors	-305.55%	-31.46%	-4.73%

Analyst Recommendations

This is a summary of recent ratings and price targets for DEFSEC Technologies and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DEFSEC Technologies	1	0	0	0	1.00
DEFSEC Technologies Competitors	2076	8039	12367	542	2.49

As a group, “Aerospace & Defense” companies have a potential upside of 30.16%. Given DEFSEC Technologies’ competitors stronger consensus rating and higher probable upside, analysts plainly believe DEFSEC Technologies has less favorable growth aspects than its competitors.

Volatility and Risk

DEFSEC Technologies has a beta of 2.79, meaning that its stock price is 179% more volatile than the S&P 500. Comparatively, DEFSEC Technologies’ competitors have a beta of 1.28, meaning that their average stock price is 28% more volatile than the S&P 500.

Insider & Institutional Ownership

21.4% of DEFSEC Technologies shares are owned by institutional investors. Comparatively, 49.4% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 12.1% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

DEFSEC Technologies competitors beat DEFSEC Technologies on 11 of the 13 factors compared.

DEFSEC Technologies Company Profile

DEFSEC develops and commercializes breakthrough next-generation tactical systems for military and security forces. The Company’s current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons. Other DEFSEC products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems, and all come integrated with TAK. The Company also has a new proprietary non-lethal product line branded PARA OPSTM with applications across all segments of the non-lethal market, including law enforcement. The Company is headquartered in Ottawa, Canada, with representative offices in London, UK and Abu Dhabi, UAE.