Mercury Systems (NASDAQ:MRCY) and Electronic Systems Technology (OTCMKTS:ELST) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Valuation & Earnings
This table compares Mercury Systems and Electronic Systems Technology’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mercury Systems||$493.18 million||5.00||$40.88 million||$1.13||45.10|
|Electronic Systems Technology||$1.42 million||1.34||-$440,000.00||N/A||N/A|
Risk and Volatility
Mercury Systems has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Electronic Systems Technology has a beta of -0.43, indicating that its stock price is 143% less volatile than the S&P 500.
Insider and Institutional Ownership
96.8% of Mercury Systems shares are owned by institutional investors. 2.8% of Mercury Systems shares are owned by company insiders. Comparatively, 45.7% of Electronic Systems Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Mercury Systems and Electronic Systems Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Electronic Systems Technology||-26.21%||-18.83%||-18.29%|
This is a summary of current recommendations for Mercury Systems and Electronic Systems Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Electronic Systems Technology||0||0||0||0||N/A|
Mercury Systems currently has a consensus target price of $53.83, indicating a potential upside of 5.64%. Given Mercury Systems’ higher possible upside, equities analysts clearly believe Mercury Systems is more favorable than Electronic Systems Technology.
Mercury Systems beats Electronic Systems Technology on 10 of the 11 factors compared between the two stocks.
Mercury Systems Company Profile
Mercury Systems, Inc. provides sensor and safety critical mission processing subsystems for various critical defense and intelligence programs in the United States. Its products and solutions are deployed in approximately 300 programs with 25 defense contractors. The company's principal programs include Aegis, Patriot, Surface Electronic Warfare Improvement Program, Gorgon Stare, Predator, F-35, Reaper, F-16 SABR, E2D Hawkeye, Paveway, Filthy Buzzard, PGK, ProVision, P1, and AIDEWS. It also designs, markets, and licenses software and middleware environments under the MultiCore Plus name to enhance development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms. In addition, the company offers hardware products, including components, such as power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, monolithic microwave integrated circuits, and memory and storage devices; embedded processing modules and boards, switch fabric boards, high speed input/output boards, digital receiver boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers, as well as graphics and video processing, and Ethernet and input-output boards; and integrated subsystems. The company was formerly known as Mercury Computer Systems, Inc. and changed its name to Mercury Systems, Inc. in November 2012. Mercury Systems, Inc. was founded in 1981 and is headquartered in Andover, Massachusetts.
Electronic Systems Technology Company Profile
Electronic Systems Technology, Inc., doing business as ESTeem Wireless Modems, designs, develops, manufactures and markets industrial wireless products and accessories in the United States and internationally. Its ESTeem industrial wireless products provide communication links between computers networks, network enabled devices, and mobile devices without cables. The company also offers data radio products for process automation in commercial, industrial, and government arenas, as well as various accessories to support the ESTeem products, such as antennas, power supplies, and cable assemblies. In addition, it offers repair and upgrade services; and professional, site survey testing, system start-up, and custom engineering services. The company's products are used in various applications, including water/wastewater, oil/gas, mining, and industrial automation. It markets its products through direct sales, sales representatives, and resellers. Electronic Systems Technology, Inc. was founded in 1982 and is based in Kennewick, Washington.
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