Arotech Corporation (NASDAQ: ARTX) and Energizer Holdings (NYSE:ENR) are both aerospace companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitabiliy, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Arotech Corporation and Energizer Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arotech Corporation 0 0 2 0 3.00
Energizer Holdings 0 3 2 0 2.40

Arotech Corporation presently has a consensus price target of $4.75, indicating a potential upside of 35.71%. Energizer Holdings has a consensus price target of $55.40, indicating a potential upside of 33.69%. Given Arotech Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Arotech Corporation is more favorable than Energizer Holdings.

Valuation & Earnings

This table compares Arotech Corporation and Energizer Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Arotech Corporation $89.92 million 1.02 $5.36 million ($0.12) -29.16
Energizer Holdings $1.72 billion 1.49 $360.30 million $3.01 13.77

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

Dividends

Energizer Holdings pays an annual dividend of $1.10 per share and has a dividend yield of 2.7%. Arotech Corporation does not pay a dividend. Energizer Holdings pays out 36.5% of its earnings in the form of a dividend.

Insider & Institutional Ownership

21.2% of Arotech Corporation shares are held by institutional investors. Comparatively, 91.7% of Energizer Holdings shares are held by institutional investors. 9.2% of Arotech Corporation shares are held by company insiders. Comparatively, 1.7% of Energizer Holdings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Arotech Corporation and Energizer Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arotech Corporation -3.31% 1.59% 0.94%
Energizer Holdings 10.97% 529.84% 10.80%

Volatility and Risk

Arotech Corporation has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Energizer Holdings has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Summary

Energizer Holdings beats Arotech Corporation on 9 of the 15 factors compared between the two stocks.

Arotech Corporation Company Profile

Arotech Corporation is a defense and security products and services company, engaged in providing interactive simulation for military, law enforcement and commercial markets, and batteries and charging systems for the military, commercial and medical markets. The Company operates through two segments: Training and Simulation Division, and Power Systems Division. The Company’s Training and Simulation Division develops, manufactures and markets multimedia and interactive digital solutions for engineering, use-of-force training and operator training of military, law enforcement, security, emergency services and other personnel. The Company’s Power Systems Division provides battery solutions, energy management and power distribution technologies and product design and manufacturing services for the aerospace, defense, law enforcement, homeland security markets, and it manufactures and sells rechargeable batteries for defense and security products and medical and industrial applications.

Energizer Holdings Company Profile

Energizer Holdings, Inc. is a manufacturer, marketer and distributor of household batteries, specialty batteries and lighting products. The Company is a designer and marketer of automotive fragrance and appearance products. It operates through four geographic segments: North America, which consists of the United States and Canada; Latin America, which includes its markets in Mexico, the Caribbean, Central America and South America; Europe, the Middle East and Africa (EMEA), and Asia Pacific, which consists of its markets in Asia, Australia and New Zealand. The Company offers batteries using lithium, alkaline, carbon zinc, nickel metal hydride, zinc air and silver oxide constructions. These products are sold under the Energizer and Eveready brands in the performance, premium and price segments and include primary, rechargeable, specialty and hearing aid products. It manufactures, distributes and markets lighting products, including headlights, lanterns, kid’s lights and area lights.

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