Axon Enterprise (NASDAQ:AXON – Get Free Report) and Saab (OTCMKTS:SAABY – Get Free Report) are both large-cap aerospace companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.
Institutional and Insider Ownership
79.1% of Axon Enterprise shares are owned by institutional investors. 5.7% of Axon Enterprise shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Axon Enterprise and Saab”s 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 | 22.40 | $377.03 million | $3.16 | 187.08 |
| Saab | $6.03 billion | 5.81 | $394.58 million | $0.62 | 52.76 |
Saab has higher revenue and earnings than Axon Enterprise. Saab is trading at a lower price-to-earnings ratio than Axon Enterprise, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Axon Enterprise has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Saab has a beta of -0.19, meaning that its stock price is 119% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Axon Enterprise and Saab, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Axon Enterprise | 0 | 4 | 14 | 0 | 2.78 |
| Saab | 2 | 1 | 0 | 1 | 2.00 |
Axon Enterprise presently has a consensus target price of $802.71, suggesting a potential upside of 35.79%. Given Axon Enterprise’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Axon Enterprise is more favorable than Saab.
Profitability
This table compares Axon Enterprise and Saab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Axon Enterprise | 10.05% | 4.29% | 1.95% |
| Saab | 7.17% | 13.23% | 4.94% |
Summary
Axon Enterprise beats Saab on 10 of the 15 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 Saab
Saab AB (publ) provides products, services, and solutions for military defense, aviation, and civil security markets worldwide. The company operates through Aeronautics, Dynamics, Surveillance, Kockums, and Combitech segments. The company develops military aviation technology, as well as conducts studies on manned and unmanned aircraft. It also provides ground combat weapons, missile systems, torpedoes, unmanned underwater vehicles, training and simulation systems, and signature management systems for armed forces; and niche products for the civil and defense market, such as underwater vehicles for the offshore industry. In addition, the company offers solutions for safety and security, surveillance and decision support, and threat detection, location, and protection, including airborne, ground-based and naval radar, electronic warfare, and combat systems, as well as C4I solutions. Additionally, it provides submarines with the Stirling system for air independent propulsion, surface combatants, mine hunting systems, and autonomous vessels; and systems development, systems integration, information security, systems security, communications, mechanics, and technical product information and logistics. Saab AB (publ) was incorporated in 1937 and is headquartered in Stockholm, Sweden.
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