Financial Survey: Axon Enterprise (NASDAQ:AXON) versus Bae Systems (OTCMKTS:BAESY)

Axon Enterprise (NASDAQ:AXON) and Bae Systems (OTCMKTS:BAESY) are both large-cap aerospace companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Axon Enterprise and Bae Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axon Enterprise	0	4	14	0	2.78
Bae Systems	1	1	5	0	2.57

Axon Enterprise presently has a consensus target price of $841.64, suggesting a potential upside of 19.72%. Given Axon Enterprise’s stronger consensus rating and higher possible upside, equities analysts clearly believe Axon Enterprise is more favorable than Bae Systems.

Valuation and Earnings

This table compares Axon Enterprise and Bae Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axon Enterprise	$2.08 billion	26.50	$377.03 million	$4.05	173.59
Bae Systems	$28.48 billion	2.80	$2.50 billion	N/A	N/A

Bae Systems has higher revenue and earnings than Axon Enterprise.

Insider & Institutional Ownership

79.1% of Axon Enterprise shares are owned by institutional investors. Comparatively, 0.2% of Bae Systems shares are owned by institutional investors. 4.4% of Axon Enterprise shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Axon Enterprise and Bae Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axon Enterprise	13.64%	6.80%	3.18%
Bae Systems	N/A	N/A	N/A

Volatility and Risk

Axon Enterprise has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Bae Systems has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.

Summary

Axon Enterprise beats Bae Systems on 10 of the 12 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 Bae Systems

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance capabilities, space electronics, and electric drive propulsion systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for critical weapons systems, C5ISR, and cyber security; and solutions and services to intelligence and federal/civilian agencies. It also offers data intelligence solutions to protect nations, businesses, and citizens. The Platforms & Services segment manufactures, and upgrades combat vehicles, weapons, and munitions, as well as provides naval ship repair services and the management of government-owned ammunition plants. The Air segment develops future combat air systems and falconworks. The Maritime segment provides maritime and land activities, including submarine, ship build, and support programmes. BAE Systems plc was founded in 1970 and is headquartered in Camberley, the United Kingdom.