Mercury Systems (NASDAQ: MRCY) is one of 49 public companies in the “Aerospace & Defense” industry, but how does it contrast to its peers? We will compare Mercury Systems to similar businesses based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Institutional and Insider Ownership

96.3% of Mercury Systems shares are held by institutional investors. Comparatively, 70.3% of shares of all “Aerospace & Defense” companies are held by institutional investors. 3.5% of Mercury Systems shares are held by company insiders. Comparatively, 7.0% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Mercury Systems and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Mercury Systems $408.59 million $24.87 million 57.98
Mercury Systems Competitors $8.76 billion $783.10 million 149.88

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

Analyst Ratings

This is a summary of recent ratings and target prices for Mercury Systems and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mercury Systems 0 2 5 0 2.71
Mercury Systems Competitors 478 2152 2376 84 2.41

Mercury Systems presently has a consensus price target of $50.20, suggesting a potential upside of 0.68%. As a group, “Aerospace & Defense” companies have a potential upside of 4.64%. Given Mercury Systems’ peers higher probable upside, analysts clearly believe Mercury Systems has less favorable growth aspects than its peers.

Profitability

This table compares Mercury Systems and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mercury Systems 9.14% 6.51% 5.12%
Mercury Systems Competitors -4.85% 24.07% 3.89%

Volatility & Risk

Mercury Systems has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, Mercury Systems’ peers have a beta of 1.07, suggesting that their average share price is 7% more volatile than the S&P 500.

Summary

Mercury Systems peers beat Mercury Systems on 8 of the 13 factors compared.

About Mercury Systems

Mercury Systems, Inc. is a commercial provider of secure processing subsystems designed and made in the United States. The Company’s solutions support a range of defense and intelligence programs. Its technologies include embedded processing modules and subsystems, radio frequency (RF) and microwave multi-function assemblies, as well as subsystems, and RF and microwave components. It designs and builds RF and microwave components and subsystems for the electronic warfare (EW), signals intelligence (SIGINT) and other communications requirements and applications. It offers analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. It designs, markets and sells software and middleware environments for the development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms. It also offers solutions in mission computing, safety-critical avionics and platform management.

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