Head to Head Review: Leonardo DRS (DRS) & Its Rivals
Leonardo DRS (NASDAQ:DRS – Get Rating ) is one of 19 publicly traded companies in the “Electronic parts and equipment, not elsewhere classified” industry, but how does it compare to its competitors? We will compare Leonardo DRS to related businesses based on the strength of its dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Profitability
This table compares Leonardo DRS and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on equity | Return on assets | |
| Leonardo DRS | 39.19% | 55.66% | 31.52% |
| Leonardo DRS Competitors | -126.52% | -12.06% | 2.10% |
Risk and volatility
Leonardo DRS has a beta of 0.91, meaning its share price is 9% less volatile than the S&P 500. Compared to that, Leonardo DRS’s competitors have a beta of 1.53, meaning their average share price is 53% more volatile than the S&P 500.
Insider & Institutional Ownership
61.4% of Leonardo DRS shares are held by institutional investors. In comparison, 47.9% of shares of all “Electronic parts and equipment, not elsewhere classified” companies are held by institutional investors. 1.0% of Leonardo DRS shares are held by company insiders. Comparatively, 13.4% of shares of all “Electronic parts and equipment, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and big money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Leonardo DRS and its competitors’ top-line revenue, earnings per share and valuation.
| Gross income | Net income | Price/Earnings ratio | |
| Leonardo DRS | $117.24 million | $25.07 million | 109.59 |
| Leonardo DRS Competitors | $4.83 billion | $265.96 million | 14.28 |
Leonardo DRS’s competitors have higher revenue and earnings than Leonardo DRS. Leonardo DRS is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Analyst recommendations
This is a breakdown of recent ratings and price targets for Leonardo DRS and its competitors, as reported by MarketBeat.com.
| Sell ratings | Keep Ratings | Buy Ratings | Strong buy ratings | Rating score | |
| Leonardo DRS | 0 | 0 | 1 | 0 | 3.00 |
| Leonardo DRS Competitors | 38 | 350 | 365 | 20 | 2.47 |
Leonardo DRS currently has a consensus target price of $19.00, suggesting a potential upside of 44.49%. As a group, “Electronic parts and equipment, not elsewhere classified” companies have a potential increase of 20.70%. Given Leonardo DRS’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Leonardo DRS is more favorable than its rivals.
Summary
Leonardo DRS beats its competitors on 8 of the 13 factors compared.
About Leonardo DRS
(Get rating)
Leonardo DRS, Inc., together with its subsidiaries, provides defense products and technologies in the land, air, sea, space, cyber and security, and commercial domains for military applications. It operates in two segments, Advanced Sensing and Computing, and Integrated Mission Systems. The company offers advanced sensor technologies, including infrared systems and sensors for threat detection and situational awareness; uncooled infrared systems and tanning solutions; airborne, ground vehicle-mounted and dismounted soldier electronic warfare (EW) systems; and EW software and training systems, and intelligence solutions. It also provides computer systems for ground vehicles, ships and submarines; network and data distribution applications; sensor systems; and networked computing infrastructure on military platform. In addition, the company offers force protection systems, such as solutions for anti-unmanned aerial systems, short-range air defense systems and active protection systems; and power control, distribution, conversion and propulsion systems, as well as hybrid electric propulsion systems, energy storage, gas turbine packages, nuclear instrumentation and controls, and thermal management and cooling equipment. It serves the US military, aerospace and defense prime contractors, government intelligence agencies and international military customers. The company was founded in 1969 and is based in Arlington, Virginia.
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