Arotech (NASDAQ:ARTX) and Manhattan Scientifics (OTCMKTS:MHTX) are both small-cap aerospace companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Profitability

This table compares Arotech and Manhattan Scientifics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arotech 5.72% 7.38% 4.59%
Manhattan Scientifics N/A -46.94% -30.12%

Risk and Volatility

Arotech has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Manhattan Scientifics has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Arotech and Manhattan Scientifics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arotech 0 0 0 0 N/A
Manhattan Scientifics 0 0 0 0 N/A

Institutional and Insider Ownership

28.6% of Arotech shares are held by institutional investors. Comparatively, 0.2% of Manhattan Scientifics shares are held by institutional investors. 9.4% of Arotech shares are held by company insiders. Comparatively, 11.8% of Manhattan Scientifics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Arotech and Manhattan Scientifics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arotech $98.72 million 0.86 $3.83 million $0.16 20.06
Manhattan Scientifics $140,000.00 38.13 $1.54 million N/A N/A

Arotech has higher revenue and earnings than Manhattan Scientifics.

Summary

Arotech beats Manhattan Scientifics on 7 of the 9 factors compared between the two stocks.

About Arotech

Arotech Corporation provides defense and security products worldwide. The company's Training and Simulation division develops, manufactures, and markets multimedia and interactive digital solutions for engineering, use-of-force training, and operator training of military, law enforcement, security, emergency services, and other personnel. This division offers simulators, systems engineering support, and software products for training vehicle operators to the United States military, government, municipalities, and private industry; weapon simulations used to train military pilots, weapon employment information used in air launched weapons, and part-task simulators to train aircrew; specialized use-of-force training simulators and systems for police, security personnel, and the military under the MILO Range trade name; and consulting and development support services under the Realtime Technologies trade name. Its Power Systems division provides electronics engineering and design, system integration, rapid prototyping, and vertically production services for military, aerospace, and industrial customers, including hybrid power generation systems, smart power subsystems for military vehicles and dismounted applications, and aircraft and missile systems support for weapons and communications technologies. This division also develops and sells rechargeable and primary batteries, and smart chargers to the military and medical markets, and to private defense industry under the Epsilor name. In addition, it develops, manufactures, and markets primary batteries, rechargeable batteries, and battery chargers for the military; and produces water-activated lifejacket lights for commercial aviation and marine applications under the Electric Fuel name. The company was formerly known as Electric Fuel Corporation and changed its name to Arotech Corporation in September 2003. The company was founded in 1990 and is based in Ann Arbor, Michigan.

About Manhattan Scientifics

Manhattan Scientifics, Inc., a technology incubator company, focuses on the technology transfer and commercialization of transformative technologies in the areas of nanotechnology applications in medicine in the United States. It develops cancer detection technology and nanostructured metal technologies. The company was formerly known as Grand Enterprises, Inc. Manhattan Scientifics, Inc. was founded in 1992 and is based in New York, New York.

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