Reviewing DEFSEC Technologies (DFSC) and Its Competitors

DEFSEC Technologies (NASDAQ:DFSC) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it contrast to its peers? We will compare DEFSEC Technologies to related companies based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

21.4% of DEFSEC Technologies shares are owned by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 11.8% of shares of all “Aerospace & Defense” companies are owned by 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.

Volatility and Risk

DEFSEC Technologies has a beta of 2.87, meaning that its stock price is 187% more volatile than the S&P 500. Comparatively, DEFSEC Technologies’ peers have a beta of 1.39, meaning that their average stock price is 39% more volatile than the S&P 500.

Profitability

This table compares DEFSEC Technologies and its peers’ 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%
DEFSEC Technologies Competitors	-347.37%	-49.14%	-4.39%

Analyst Ratings

This is a breakdown of recent ratings for DEFSEC Technologies and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DEFSEC Technologies	1	0	0	0	1.00
DEFSEC Technologies Competitors	2164	8283	12823	582	2.50

As a group, “Aerospace & Defense” companies have a potential upside of 29.97%. Given DEFSEC Technologies’ peers stronger consensus rating and higher possible upside, analysts plainly believe DEFSEC Technologies has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares DEFSEC Technologies and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DEFSEC Technologies	$3.53 million	-$6.88 million	-0.09
DEFSEC Technologies Competitors	$8.35 billion	$569.54 million	21.36

DEFSEC Technologies’ peers have higher revenue and earnings than DEFSEC Technologies. DEFSEC Technologies 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.

Summary

DEFSEC Technologies peers beat DEFSEC Technologies on 11 of the 13 factors compared.

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.