Contrasting MTU Aero Engines (OTCMKTS:MTUAY) and Ondas (NASDAQ:ONDS)

Ondas (NASDAQ:ONDS) and MTU Aero Engines (OTCMKTS:MTUAY) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Profitability

This table compares Ondas and MTU Aero Engines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ondas	93.55%	-14.20%	-7.15%
MTU Aero Engines	10.43%	22.42%	7.72%

Analyst Recommendations

This is a summary of recent recommendations for Ondas and MTU Aero Engines, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ondas	1	1	10	0	2.75
MTU Aero Engines	2	3	4	1	2.40

Ondas currently has a consensus price target of $16.89, indicating a potential upside of 172.36%. Given Ondas’ stronger consensus rating and higher probable upside, equities analysts clearly believe Ondas is more favorable than MTU Aero Engines.

Insider and Institutional Ownership

37.7% of Ondas shares are owned by institutional investors. Comparatively, 0.0% of MTU Aero Engines shares are owned by institutional investors. 1.7% of Ondas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Ondas and MTU Aero Engines”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ondas	$50.73 million	71.17	-$132.02 million	($0.07)	-88.57
MTU Aero Engines	$9.91 billion	1.93	$1.15 billion	$10.21	17.37

MTU Aero Engines has higher revenue and earnings than Ondas. Ondas is trading at a lower price-to-earnings ratio than MTU Aero Engines, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Ondas has a beta of 2.92, meaning that its stock price is 192% more volatile than the S&P 500. Comparatively, MTU Aero Engines has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Summary

Ondas beats MTU Aero Engines on 8 of the 15 factors compared between the two stocks.

About Ondas

Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. It operates in two segments, Ondas Networks and Ondas Autonomous Systems. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Optimus, an AI-powered drone with imaging payloads; the Airbase, a ruggedized weatherproof base station for housing, data processing, and cloud transfer; Insightful, a secure web portal and API, which enables remote interaction with the system, data, and resulting analytics anywhere in the world; and the Raider, a counter-drone system for security and the protection of critical infrastructure, assets, and people from the threat of hostile drones. It serves users in rail, energy, mining, agriculture, public safety, critical infrastructure, and government markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.

About MTU Aero Engines

MTU Aero Engines AG, together with its subsidiaries, engages in the development, manufacture, marketing, and maintenance of commercial and military aircraft engines, and aero-derivative industrial gas turbines in Germany, other European countries, North America, Asia, and internationally. It operates through two segments: Original Equipment Manufacturing (OEM Business); and Maintenance, Repair, and Overhaul (MRO Business). The company offers commercial aircraft engines for wide body jets, narrow body and regional jets, business jets, and turboprops; military aircraft engines for fighter jets, helicopters, and transporters; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and manufactures and markets various spare parts. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.