Head to Head Review: VirTra (VTSI) versus Its Rivals

VirTra (NASDAQ:VTSI) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it compare to its peers? We will compare VirTra to similar businesses based on the strength of its earnings, valuation, institutional ownership, analyst recommendations, dividends, profitability and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VirTra	-17.04%	-6.59%	-4.57%
VirTra Competitors	-289.58%	-47.50%	-4.35%

Volatility & Risk

VirTra has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, VirTra’s peers have a beta of 1.43, meaning that their average share price is 43% more volatile than the S&P 500.

Earnings and Valuation

This table compares VirTra and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
VirTra	$17.50 million	$260,000.00	-10.04
VirTra Competitors	$8.58 billion	$569.54 million	24.85

VirTra’s peers have higher revenue and earnings than VirTra. VirTra 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.

Insider and Institutional Ownership

14.7% of VirTra shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 3.5% of VirTra shares are held by insiders. Comparatively, 11.9% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for VirTra and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VirTra	1	1	1	0	2.00
VirTra Competitors	2145	8220	12700	574	2.50

VirTra currently has a consensus price target of $5.00, suggesting a potential upside of 91.57%. As a group, “Aerospace & Defense” companies have a potential upside of 25.13%. Given VirTra’s higher probable upside, analysts clearly believe VirTra is more favorable than its peers.

Summary

VirTra peers beat VirTra on 10 of the 13 factors compared.

VirTra Company Profile

VirTra, Inc. provides use of force training and firearms training simulators for the law enforcement, military, and commercial markets worldwide. Its patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. It offers V-300 simulator, a 300 degree wrap-around screen for simulation training; V-180 simulator, a 180 degree screen for smaller spaces or budgets; V-100, a single-screen based simulator system; V-100 MIL, a single-screen based simulator system; and V-ST PRO, a realistic single screen firearms shooting and skills training simulator. The company also provides Virtual Interactive Coursework Training Academy (V-VICTA), which enables law enforcement agencies to teach, train, test, and sustain departmental training requirements; and Subscription Training Equipment Partnership, a program that allows agencies to utilize its simulator products, accessories, and V-VICTA interactive coursework on a subscription basis. In addition, it offers V-Author software that allows users to create, edit, and train with content specific to agency’s objectives and environments; Simulated Recoil Kits, a range of realistic and reliable simulated recoil kits/weapons; Threat-Fire, a device that applies real-world stress on the trainees during simulation training; and TASER, an OC spray and low-light training devices that interact with its simulators for training. The company sells its simulators and related products through a direct sales force and distribution partners. The company was founded in 1993 and is headquartered in Chandler, Arizona.