Cubic Corporation (NYSE: CUB) and TASER International (NASDAQ:AAXN) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Risk & Volatility

Cubic Corporation has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, TASER International has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Valuation and Earnings

This table compares Cubic Corporation and TASER International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cubic Corporation $1.45 billion 0.97 $53.94 million ($1.19) -43.70
TASER International $312.84 million 3.87 $33.89 million $0.32 71.60

Cubic Corporation has higher revenue and earnings than TASER International. Cubic Corporation is trading at a lower price-to-earnings ratio than TASER International, indicating that it is currently the more affordable of the two stocks.

Dividends

Cubic Corporation pays an annual dividend of $0.27 per share and has a dividend yield of 0.5%. TASER International does not pay a dividend. Cubic Corporation pays out -22.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

88.8% of Cubic Corporation shares are held by institutional investors. Comparatively, 96.0% of TASER International shares are held by institutional investors. 7.7% of Cubic Corporation shares are held by company insiders. Comparatively, 3.7% of TASER International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cubic Corporation and TASER International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cubic Corporation 0 0 5 0 3.00
TASER International 0 3 1 0 2.25

Cubic Corporation presently has a consensus price target of $56.40, indicating a potential upside of 8.46%. TASER International has a consensus price target of $27.50, indicating a potential upside of 20.03%. Given TASER International’s higher possible upside, analysts plainly believe TASER International is more favorable than Cubic Corporation.

Profitability

This table compares Cubic Corporation and TASER International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cubic Corporation -2.20% -4.74% -2.22%
TASER International 5.45% 10.47% 5.60%

Summary

Cubic Corporation beats TASER International on 8 of the 15 factors compared between the two stocks.

Cubic Corporation Company Profile

Cubic Corporation (Cubic) designs, integrates and operates systems, products and services that provide situational awareness for its customers in the transportation and defense industries. The Company operates in three business segments across the global transportation and defense markets, which include Cubic Transportation Systems (CTS), Cubic Global Defense (CGD) and Cubic Global Defense Services (CGD Services). The Company’s CTS segment is a systems integrator of payment and information technology and services for travel solutions. The Company’s CGD Systems is focused on two primary lines of business: training systems and secure communications (SC) products. The Company’s CGD Services segment is a provider of training, operations, intelligence, maintenance, technical and other support services to the United States government and its agencies and allied nations. It also provides cross-domain hardware solutions to address multi-level security challenges across common networks.

TASER International Company Profile

Axon Enterprise, Inc., formerly TASER International, Inc., is engaged in development, manufacture and sale of conducted electrical weapons (CEWs) for use by law enforcement, military, corrections and private security personnel, and by private individuals for personal defense. It is also engaged in development of connected wearable on-officer cameras. It operates through two segments: the sale of CEWs, accessories, and other related products and services (the TASER Weapons segment), and the Axon business, focused on devices, wearables, applications, cloud and mobile products (the Axon segment). Its TASER Weapons product line includes TASER X26P, TASER X2, TASER C2, TASER Pulse and Replacement Cartridges. Its hardware products include Axon Body 2, Axon Flex, Axon Fleet, Axon Interview, Axon Signal and Axon Dock. Its Axon software and mobile technologies include Evidence.com, Evidence.com for Prosecutors, Evidence Sync, Axon Capture, Axon View, Axon Five, Axon Convert and Axon Detect.

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