Comparing Leonardo DRS (DRS) & Its Peers

Leonardo DRS (NASDAQ:DRS) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its competitors? We will compare Leonardo DRS to similar businesses based on the strength of its profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Leonardo DRS	9.40%	14.33%	9.29%
Leonardo DRS Competitors	-278.19%	-46.45%	-4.02%

Institutional and Insider Ownership

18.8% of Leonardo DRS shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 0.3% of Leonardo DRS shares are held by company insiders. Comparatively, 11.9% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Leonardo DRS and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leonardo DRS	0	3	4	3	3.00
Leonardo DRS Competitors	2153	8250	12740	579	2.50

Leonardo DRS presently has a consensus price target of $51.50, indicating a potential upside of 56.06%. As a group, “Aerospace & Defense” companies have a potential upside of 34.34%. Given Leonardo DRS’s stronger consensus rating and higher possible upside, research analysts plainly believe Leonardo DRS is more favorable than its competitors.

Dividends

Leonardo DRS pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Leonardo DRS pays out 26.5% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 38.9% of their earnings in the form of a dividend.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Leonardo DRS	$3.65 billion	$278.00 million	24.26
Leonardo DRS Competitors	$8.42 billion	$569.01 million	23.98

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

Volatility and Risk

Leonardo DRS has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Leonardo DRS’s competitors have a beta of 1.31, indicating that their average stock price is 31% more volatile than the S&P 500.

Summary

Leonardo DRS competitors beat Leonardo DRS on 8 of the 15 factors compared.

Leonardo DRS Company Profile

Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications including platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The IMS segment designs, develops, manufacture, and integrates power conversion, control, and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation, and logistics systems for the U.S. and allied defense customers. This segment also offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems and associated efficient, rugged, and compact power conversion, electrical actuation systems, as well as cooling technologies; and motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems. The company was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo S.p.A.