Contrasting VirTra (NASDAQ:VTSI) and Leonardo DRS (NASDAQ:DRS)

Leonardo DRS (NASDAQ:DRS) and VirTra (NASDAQ:VTSI) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Earnings & Valuation

This table compares Leonardo DRS and VirTra”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leonardo DRS	$3.65 billion	2.64	$278.00 million	$1.19	30.31
VirTra	$22.40 million	1.51	$260,000.00	($0.26)	-11.46

Leonardo DRS has higher revenue and earnings than VirTra. VirTra is trading at a lower price-to-earnings ratio than Leonardo DRS, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Leonardo DRS and VirTra’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leonardo DRS	8.52%	12.97%	8.29%
VirTra	-17.04%	-6.59%	-4.57%

Analyst Ratings

This is a breakdown of current ratings and price targets for Leonardo DRS and VirTra, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leonardo DRS	0	2	3	1	2.83
VirTra	1	1	1	0	2.00

Leonardo DRS presently has a consensus target price of $53.60, indicating a potential upside of 48.60%. VirTra has a consensus target price of $5.00, indicating a potential upside of 67.79%. Given VirTra’s higher probable upside, analysts clearly believe VirTra is more favorable than Leonardo DRS.

Insider and Institutional Ownership

18.8% of Leonardo DRS shares are owned by institutional investors. Comparatively, 14.7% of VirTra shares are owned by institutional investors. 0.3% of Leonardo DRS shares are owned by company insiders. Comparatively, 3.5% of VirTra shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Leonardo DRS has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, VirTra has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Summary

Leonardo DRS beats VirTra on 12 of the 15 factors compared between the two stocks.

About Leonardo DRS

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.

About VirTra

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.