Arotech (NASDAQ: ARTX) is one of 25 public companies in the “Miscellaneous electrical machinery, equipment, & supplies” industry, but how does it weigh in compared to its rivals? We will compare Arotech to similar companies based on the strength of its dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Valuation & Earnings

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This table compares Arotech and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Arotech $98.72 million $3.83 million 20.63
Arotech Competitors $793.44 million $37.86 million 4.92

Arotech’s rivals have higher revenue and earnings than Arotech. Arotech is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Arotech and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arotech 0 0 1 0 3.00
Arotech Competitors 43 278 455 12 2.55

Arotech presently has a consensus target price of $4.50, indicating a potential upside of 36.36%. As a group, “Miscellaneous electrical machinery, equipment, & supplies” companies have a potential upside of 16.05%. Given Arotech’s stronger consensus rating and higher probable upside, analysts clearly believe Arotech is more favorable than its rivals.

Profitability

This table compares Arotech and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arotech 3.88% 5.98% 3.61%
Arotech Competitors -0.24% -138.93% 17.98%

Institutional and Insider Ownership

22.3% of Arotech shares are held by institutional investors. Comparatively, 44.3% of shares of all “Miscellaneous electrical machinery, equipment, & supplies” companies are held by institutional investors. 9.4% of Arotech shares are held by insiders. Comparatively, 16.4% of shares of all “Miscellaneous electrical machinery, equipment, & supplies” companies are held by 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.

Risk & Volatility

Arotech has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Arotech’s rivals have a beta of 0.75, indicating that their average share price is 25% less volatile than the S&P 500.

Summary

Arotech beats its rivals on 7 of the 13 factors compared.

Arotech 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.

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