Head-To-Head Comparison: Huntington Ingalls Industries (NYSE:HII) vs. DEFSEC Technologies (NASDAQ:DFSC)

DEFSEC Technologies (NASDAQ:DFSC) and Huntington Ingalls Industries (NYSE:HII) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for DEFSEC Technologies and Huntington Ingalls Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DEFSEC Technologies	1	0	0	0	1.00
Huntington Ingalls Industries	0	5	5	0	2.50

Huntington Ingalls Industries has a consensus target price of $368.88, indicating a potential upside of 36.11%. Given Huntington Ingalls Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Huntington Ingalls Industries is more favorable than DEFSEC Technologies.

Profitability

This table compares DEFSEC Technologies and Huntington Ingalls Industries’ 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%
Huntington Ingalls Industries	5.01%	12.89%	5.26%

Volatility & Risk

DEFSEC Technologies has a beta of 2.79, indicating that its share price is 179% more volatile than the S&P 500. Comparatively, Huntington Ingalls Industries has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.

Insider and Institutional Ownership

21.4% of DEFSEC Technologies shares are owned by institutional investors. Comparatively, 90.5% of Huntington Ingalls Industries shares are owned by institutional investors. 0.8% of Huntington Ingalls Industries shares are owned 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.

Valuation & Earnings

This table compares DEFSEC Technologies and Huntington Ingalls Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DEFSEC Technologies	$3.53 million	0.67	-$6.88 million	($4.62)	-0.26
Huntington Ingalls Industries	$13.19 billion	0.81	$605.00 million	$16.78	16.15

Huntington Ingalls Industries has higher revenue and earnings than DEFSEC Technologies. DEFSEC Technologies is trading at a lower price-to-earnings ratio than Huntington Ingalls Industries, indicating that it is currently the more affordable of the two stocks.

Summary

Huntington Ingalls Industries beats DEFSEC Technologies on 13 of the 14 factors compared between the two stocks.

About DEFSEC Technologies

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.

About Huntington Ingalls Industries

Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of nuclear-powered aircraft carriers. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, the company provides C5ISR systems and operations; application of artificial intelligence and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and electronic warfare; live, virtual, and constructive solutions; unmanned, autonomous systems; and fleet sustainment; and critical nuclear operations. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.