Comparing Leonardo DRS (DRS) & Its Competitors

Leonardo DRS (NASDAQ:DRS) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it contrast to its rivals? We will compare Leonardo DRS to similar companies based on the strength of its institutional ownership, risk, valuation, earnings, dividends, analyst recommendations and profitability.

Risk and Volatility

Leonardo DRS has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Leonardo DRS’s rivals have a beta of 1.42, indicating that their average share price is 42% more volatile than the S&P 500.

Institutional & Insider Ownership

18.8% of Leonardo DRS shares are owned by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 0.3% of Leonardo DRS shares are owned by company insiders. Comparatively, 11.8% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Leonardo DRS and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Leonardo DRS	$3.65 billion	$278.00 million	25.83
Leonardo DRS Competitors	$8.35 billion	$569.54 million	21.43

Leonardo DRS’s rivals have higher revenue and earnings than Leonardo DRS. Leonardo DRS is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Leonardo DRS and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leonardo DRS	0	2	5	3	3.10
Leonardo DRS Competitors	2164	8282	12816	582	2.50

Leonardo DRS currently has a consensus price target of $50.88, suggesting a potential upside of 44.82%. As a group, “Aerospace & Defense” companies have a potential upside of 30.09%. Given Leonardo DRS’s stronger consensus rating and higher probable upside, research analysts clearly believe Leonardo DRS is more favorable than its rivals.

Profitability

This table compares Leonardo DRS and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leonardo DRS	9.40%	14.33%	9.29%
Leonardo DRS Competitors	-347.37%	-49.14%	-4.39%

Dividends

Leonardo DRS pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Leonardo DRS pays out 26.5% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 38.4% of their earnings in the form of a dividend.

Summary

Leonardo DRS beats its rivals on 8 of the 15 factors compared.

Leonardo DRS Company Profile

Leonardo DRS, Inc. is a U.S.-based defense technology company and a subsidiary of the Italian aerospace and defense group Leonardo S.p.A. It develops and supplies advanced products and services for the U.S. military and other government and commercial customers. The company’s offerings include naval power and propulsion systems, combat and mission systems, electro-optical and infrared sensors, electronic warfare and communications equipment, and computing and networking technologies. Its products support operations across maritime, land, air and space domains.