Financial Analysis: MTU Aero Engines (OTCMKTS:MTUAY) & Byrna Technologies (NASDAQ:BYRN)

Byrna Technologies (NASDAQ:BYRN) and MTU Aero Engines (OTCMKTS:MTUAY) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Byrna Technologies and MTU Aero Engines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Byrna Technologies	0	3	1	1	2.60
MTU Aero Engines	2	3	4	1	2.40

Byrna Technologies presently has a consensus target price of $6.62, suggesting a potential upside of 36.88%. Given Byrna Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Byrna Technologies is more favorable than MTU Aero Engines.

Earnings & Valuation

This table compares Byrna Technologies and MTU Aero Engines”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Byrna Technologies	$118.12 million	0.96	$9.69 million	($0.40)	-12.10
MTU Aero Engines	$9.91 billion	2.04	$1.15 billion	$10.21	18.38

MTU Aero Engines has higher revenue and earnings than Byrna Technologies. Byrna Technologies is trading at a lower price-to-earnings ratio than MTU Aero Engines, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

25.5% of Byrna Technologies shares are owned by institutional investors. Comparatively, 0.0% of MTU Aero Engines shares are owned by institutional investors. 1.6% of Byrna Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Byrna Technologies and MTU Aero Engines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Byrna Technologies	-9.20%	-14.46%	-11.88%
MTU Aero Engines	10.43%	22.42%	7.72%

Risk & Volatility

Byrna Technologies has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, MTU Aero Engines has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Summary

MTU Aero Engines beats Byrna Technologies on 9 of the 14 factors compared between the two stocks.

About Byrna Technologies

Byrna Technologies Inc., a non-lethal defense technology company, provides non-lethal alternative solutions for law enforcement and private security. The company offers handheld personal security devices and shoulder-fired launchers without the need for background check or firearm license; and projectiles including chemical irritant, kinetic, and inert rounds. It offers self-defense aerosol products under the Byran Bad Guy Repellent brand; and accessories and related safety products, which includes carbon dioxide canisters, sighting systems, and holster under the Byran Banshee and Byran Shield brand, as well as Byrna-branded apparel. In addition, the company provides the products to the consumer market through Byrna e-commerce store and Amazon storefront, and network of local, regional and national outdoor and sporting goods stores, either directly or through distributors; and professional security market through Train the Trainer program and de-escalation methods. It operates in the United States, South Africa, Europe, South America, Asia, and Canada. The company was formerly known as Security Devices International, Inc. and changed its name to Byrna Technologies Inc. in March 2020. Byrna Technologies Inc. was incorporated in 2005 and is headquartered in Andover, Massachusetts.

About MTU Aero Engines

MTU Aero Engines AG, together with its subsidiaries, engages in the development, manufacture, marketing, and maintenance of commercial and military aircraft engines, and aero-derivative industrial gas turbines in Germany, other European countries, North America, Asia, and internationally. It operates through two segments: Original Equipment Manufacturing (OEM Business); and Maintenance, Repair, and Overhaul (MRO Business). The company offers commercial aircraft engines for wide body jets, narrow body and regional jets, business jets, and turboprops; military aircraft engines for fighter jets, helicopters, and transporters; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and manufactures and markets various spare parts. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.