Comparing Ondas (NASDAQ:ONDS) and Leonardo DRS (NASDAQ:DRS)

Ondas (NASDAQ:ONDS) and Leonardo DRS (NASDAQ:DRS) are both mid-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ondas and Leonardo DRS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ondas	1	1	10	0	2.75
Leonardo DRS	0	2	3	2	3.00

Ondas presently has a consensus target price of $16.89, suggesting a potential upside of 165.93%. Leonardo DRS has a consensus target price of $53.17, suggesting a potential upside of 49.89%. Given Ondas’ higher possible upside, analysts clearly believe Ondas is more favorable than Leonardo DRS.

Profitability

This table compares Ondas and Leonardo DRS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ondas	93.55%	-14.20%	-7.15%
Leonardo DRS	8.52%	12.97%	8.29%

Volatility and Risk

Ondas has a beta of 2.92, indicating that its share price is 192% more volatile than the S&P 500. Comparatively, Leonardo DRS has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500.

Earnings and Valuation

This table compares Ondas and Leonardo DRS”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ondas	$50.73 million	72.89	-$132.02 million	($0.07)	-90.71
Leonardo DRS	$3.78 billion	2.51	$278.00 million	$1.19	29.81

Leonardo DRS has higher revenue and earnings than Ondas. Ondas is trading at a lower price-to-earnings ratio than Leonardo DRS, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

37.7% of Ondas shares are owned by institutional investors. Comparatively, 18.8% of Leonardo DRS shares are owned by institutional investors. 1.7% of Ondas shares are owned by company insiders. Comparatively, 0.3% of Leonardo DRS shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Leonardo DRS beats Ondas on 8 of the 15 factors compared between the two stocks.

About Ondas

Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. It operates in two segments, Ondas Networks and Ondas Autonomous Systems. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Optimus, an AI-powered drone with imaging payloads; the Airbase, a ruggedized weatherproof base station for housing, data processing, and cloud transfer; Insightful, a secure web portal and API, which enables remote interaction with the system, data, and resulting analytics anywhere in the world; and the Raider, a counter-drone system for security and the protection of critical infrastructure, assets, and people from the threat of hostile drones. It serves users in rail, energy, mining, agriculture, public safety, critical infrastructure, and government markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.

About Leonardo DRS

Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications including platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The IMS segment designs, develops, manufacture, and integrates power conversion, control, and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation, and logistics systems for the U.S. and allied defense customers. This segment also offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems and associated efficient, rugged, and compact power conversion, electrical actuation systems, as well as cooling technologies; and motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems. The company was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo S.p.A.