Critical Contrast: Arotech Corporation (ARTX) versus Enersys (ENS)
Arotech Corporation (NASDAQ: ARTX) and Enersys (NYSE:ENS) are both aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Enersys pays an annual dividend of $0.70 per share and has a dividend yield of 1.1%. Arotech Corporation does not pay a dividend. Enersys pays out 18.9% of its earnings in the form of a dividend.
This is a breakdown of current recommendations for Arotech Corporation and Enersys, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arotech Corporation presently has a consensus price target of $4.75, indicating a potential upside of 46.15%. Enersys has a consensus price target of $92.00, indicating a potential upside of 45.09%. Given Arotech Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Arotech Corporation is more favorable than Enersys.
Institutional & Insider Ownership
21.2% of Arotech Corporation shares are owned by institutional investors. Comparatively, 95.9% of Enersys shares are owned by institutional investors. 9.2% of Arotech Corporation shares are owned by company insiders. Comparatively, 1.4% of Enersys shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Arotech Corporation and Enersys’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Arotech Corporation has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Enersys has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500.
Valuation & Earnings
This table compares Arotech Corporation and Enersys’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Arotech Corporation||$89.92 million||0.95||$5.36 million||($0.11)||-29.55|
|Enersys||$2.39 billion||1.15||$339.41 million||$3.71||17.09|
Enersys has higher revenue and earnings than Arotech Corporation. Arotech Corporation is trading at a lower price-to-earnings ratio than Enersys, indicating that it is currently the more affordable of the two stocks.
Enersys beats Arotech Corporation on 10 of the 16 factors compared between the two stocks.
Arotech Corporation Company Profile
Arotech Corporation is a defense and security products and services company, engaged in providing interactive simulation for military, law enforcement and commercial markets, and batteries and charging systems for the military, commercial and medical markets. The Company operates through two segments: Training and Simulation Division, and Power Systems Division. The Company’s Training and Simulation Division develops, manufactures and markets multimedia and interactive digital solutions for engineering, use-of-force training and operator training of military, law enforcement, security, emergency services and other personnel. The Company’s Power Systems Division provides battery solutions, energy management and power distribution technologies and product design and manufacturing services for the aerospace, defense, law enforcement, homeland security markets, and it manufactures and sells rechargeable batteries for defense and security products and medical and industrial applications.
Enersys Company Profile
EnerSys is a manufacturer, marketer and distributor of industrial batteries. The Company manufactures, markets and distributes related products, such as chargers, power equipment, outdoor cabinet enclosures and battery accessories, and provides related after-market and customer-support services for industrial batteries. Its segments based on geographic regions consist of Americas, which consists of North and South America; EMEA, which includes Europe, the Middle East and Africa, and Asia, which includes Asia, Australia and Oceania. The Company’s product lines include reserve power and motive power products. Its Reserve power products also include thermally managed cabinets and enclosures for electronic equipment and batteries. The Company’s motive power products are used to provide power for electric industrial forklifts used in manufacturing, warehousing and other material handling applications. They are used as mining equipment, diesel locomotive starting and other rail equipment.
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