Bae Systems (OTCMKTS:BAESY) vs. Axon Enterprise (NASDAQ:AXON) Financial Contrast

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bae Systems	$28.48 billion	2.92	$2.50 billion	N/A	N/A
Axon Enterprise	$2.08 billion	26.99	$377.03 million	$4.05	176.80

Bae Systems has higher revenue and earnings than Axon Enterprise.

Profitability

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

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Bae Systems and Axon Enterprise, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bae Systems	1	1	4	0	2.50
Axon Enterprise	0	3	14	0	2.82

Axon Enterprise has a consensus price target of $841.64, suggesting a potential upside of 17.54%. Given Axon Enterprise’s stronger consensus rating and higher probable upside, analysts clearly believe Axon Enterprise is more favorable than Bae Systems.

Volatility & Risk

Bae Systems has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Axon Enterprise has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Institutional & Insider Ownership

0.2% of Bae Systems shares are held by institutional investors. Comparatively, 79.1% of Axon Enterprise shares are held by institutional investors. 5.7% of Axon Enterprise shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Axon Enterprise beats Bae Systems on 10 of the 12 factors compared between the two stocks.

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.

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.