Head to Head Analysis: Leonardo DRS (DRS) & Its Competitors

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Leonardo DRS (NASDAQ:DRSGet Rating) is one of 19 public companies in the “Electronic parts & equipment, not elsewhere classified” industry, but how does it weigh in compared to its peers? We will compare Leonardo DRS to related businesses based on the strength of its dividends, profitability, risk, earnings, institutional ownership, valuation and analyst recommendations.

Institutional and Insider Ownership

61.4% of Leonardo DRS shares are held by institutional investors. Comparatively, 47.9% of shares of all “Electronic parts & equipment, not elsewhere classified” companies are held by institutional investors. 1.0% of Leonardo DRS shares are held by insiders. Comparatively, 13.4% of shares of all “Electronic parts & equipment, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Leonardo DRS and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leonardo DRS 0 0 1 0 3.00
Leonardo DRS Competitors 38 355 365 20 2.47
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Leonardo DRS currently has a consensus price target of $19.00, suggesting a potential upside of 48.67%. As a group, “Electronic parts & equipment, not elsewhere classified” companies have a potential upside of 20.09%. Given Leonardo DRS’s stronger consensus rating and higher possible upside, equities analysts clearly believe Leonardo DRS is more favorable than its peers.

Volatility and Risk

Leonardo DRS has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Leonardo DRS’s peers have a beta of 1.53, meaning that their average share price is 53% more volatile than the S&P 500.

Earnings & Valuation

This table compares Leonardo DRS and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Leonardo DRS $117.24 million $25.07 million 6.66
Leonardo DRS Competitors $4.83 billion $265.96 million 7.63

Leonardo DRS’s peers have higher revenue and earnings than Leonardo DRS. Leonardo DRS 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Leonardo DRS 39.19% 4.94% 2.80%
Leonardo DRS Competitors -126.52% -15.23% 0.31%

Summary

Leonardo DRS beats its peers on 7 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 brownout solutions; airborne, ground vehicle mounted, and dismounted soldier electronic warfare (EW) systems; and EW software and training systems, and intelligence solutions. It also provides computing 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 counter-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 drive propulsion systems, energy storage, gas turbine packages, nuclear instrumentation and controls, and thermal management and refrigeration equipment. It serves the U.S. 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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