Axon Enterprise (NASDAQ:AXON – Get Free Report) and AerSale (NASDAQ:ASLE – Get Free Report) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.
Institutional and Insider Ownership
79.1% of Axon Enterprise shares are owned by institutional investors. Comparatively, 69.5% of AerSale shares are owned by institutional investors. 4.4% of Axon Enterprise shares are owned by insiders. Comparatively, 19.2% of AerSale shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Axon Enterprise and AerSale”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Axon Enterprise | $2.78 billion | 15.69 | $377.03 million | $1.52 | 356.84 |
| AerSale | $339.09 million | 1.09 | $5.85 million | $0.13 | 60.00 |
Axon Enterprise has higher revenue and earnings than AerSale. AerSale is trading at a lower price-to-earnings ratio than Axon Enterprise, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Axon Enterprise and AerSale, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Axon Enterprise | 0 | 3 | 16 | 0 | 2.84 |
| AerSale | 1 | 3 | 0 | 0 | 1.75 |
Axon Enterprise presently has a consensus target price of $762.93, suggesting a potential upside of 40.66%. AerSale has a consensus target price of $7.00, suggesting a potential downside of 10.26%. Given Axon Enterprise’s stronger consensus rating and higher possible upside, research analysts clearly believe Axon Enterprise is more favorable than AerSale.
Profitability
This table compares Axon Enterprise and AerSale’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Axon Enterprise | 4.48% | 2.82% | 1.26% |
| AerSale | 1.73% | 2.10% | 1.40% |
Risk & Volatility
Axon Enterprise has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, AerSale has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.
Summary
Axon Enterprise beats AerSale on 12 of the 14 factors compared between the two stocks.
About Axon Enterprise
Axon Enterprise, Inc. develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally. It operates through two segments, Software and Sensors, and TASER. The company also offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence. Its products include axon officer safety plan; taser 10, taser7, taser X26P, taser X2, taser 7 CQ, and civilian series; cameras, such as axon body, axon flex, axon fleet, axon air, axon signal sidearm, axon signal vehicle, axon interview, and axon interview portable kit; software, including axon records, evidence, standards, commander, performance, auto-transcribe, justice, investigate, respond, and justice, my90, and redaction assistant; mobile applications, and training services, as well as hardware extended warranties; and Axon docks, cartridges, and batteries. The company sells its products through its direct sales, distribution partners, online store, and third-party resellers. Axon Enterprise, Inc. has a strategic partnership with Fusus, Inc. to expand bility to aggregate live video, data, and sensor feeds. It serves law enforcement, federal, correction, fire, EMS, campus, justice healthcare, retail, private security, and personal safety industries. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. in April 2017. Axon Enterprise, Inc. was incorporated in 1993 and is headquartered in Scottsdale, Arizona.
About AerSale
AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps). The Asset Management Solutions segment engages in the sale and lease of aircraft, engines, and airframes, as well as disassembly of these assets for component parts. The TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, heavy aircraft maintenance and modification, and component MRO, as well as end-of-life disassembly services. This segment provides aircraft modifications, cargo and tanker conversions of aircraft, and aircraft storage; and MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components. The company was founded in 2008 and is headquartered in Coral Gables, Florida.
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