Financial Survey: Ducommun (NYSE:DCO) vs. Ondas (NASDAQ:ONDS)

Ondas (NASDAQ:ONDS) and Ducommun (NYSE:DCO) are both mid-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares Ondas and Ducommun’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ondas	93.55%	-14.20%	-7.15%
Ducommun	-3.10%	9.20%	5.07%

Valuation and Earnings

This table compares Ondas and Ducommun”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ondas	$50.73 million	72.54	-$132.02 million	($0.07)	-90.29
Ducommun	$824.73 million	2.93	-$37.35 million	($1.87)	-85.54

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

Risk & Volatility

Ondas has a beta of 2.92, suggesting that its share price is 192% more volatile than the S&P 500. Comparatively, Ducommun has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Institutional and Insider Ownership

37.7% of Ondas shares are held by institutional investors. Comparatively, 92.2% of Ducommun shares are held by institutional investors. 1.7% of Ondas shares are held by insiders. Comparatively, 5.0% of Ducommun shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ondas and Ducommun, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ondas	1	1	10	0	2.75
Ducommun	0	3	5	0	2.62

Ondas presently has a consensus target price of $16.89, suggesting a potential upside of 167.19%. Ducommun has a consensus target price of $198.17, suggesting a potential upside of 23.89%. Given Ondas’ stronger consensus rating and higher probable upside, equities analysts plainly believe Ondas is more favorable than Ducommun.

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 Ducommun

Ducommun Incorporated provides engineering and manufacturing services for products and applications used primarily in the aerospace and defense, industrial, medical, and other industries in the United States. The company operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment provides cable assemblies and interconnect systems; printed circuit board assemblies; electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, printed circuit board assemblies, cable assemblies, wire harnesses, interconnect systems, lightning diversion strips, surge suppressors, conformal shields, and other assemblies. The segment also supplies engineered products, including illuminated pushbutton switches and panels for aviation and test systems; microwave and millimeter switches and filters for radio frequency systems and test instrumentation; and motors and resolvers for motion control. In addition, this segment provides engineering expertise for aerospace system design, development, integration, and testing. The Structural Systems segment designs, engineers, and manufactures contoured aluminum, titanium, and Inconel aero structure components; structural assembly products, such as winglets, engine components, and fuselage structural panels; aerodynamic systems; and metal and composite bonded structures and assemblies comprising aircraft wing spoilers, large fuselage skins, rotor blades on rotary-wing aircraft and components, flight control surfaces, engine components, ammunition handling systems, and magnetic seals. It serves commercial aircraft, military fixed-wing aircraft, military and commercial rotary-wing aircraft, and space programs, as well as industrial, medical, and other end-use markets. The company was founded in 1849 and is headquartered in Santa Ana, California.