Reviewing Enersys (ENS) & Arotech Corporation (ARTX)
Enersys (NYSE: ENS) and Arotech Corporation (NASDAQ:ARTX) are both industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.
Earnings & Valuation
This table compares Enersys and Arotech Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Enersys||$2.39 billion||1.19||$333.11 million||$3.71||17.60|
|Arotech Corporation||$89.59 million||0.98||$4.70 million||($0.11)||-30.45|
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.
Volatility and Risk
Enersys has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, Arotech Corporation has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
Insider and Institutional Ownership
94.8% of Enersys shares are owned by institutional investors. Comparatively, 21.6% of Arotech Corporation shares are owned by institutional investors. 1.4% of Enersys shares are owned by insiders. Comparatively, 9.2% of Arotech Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Enersys and Arotech Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for Enersys and Arotech Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Enersys presently has a consensus target price of $82.50, indicating a potential upside of 26.36%. Arotech Corporation has a consensus target price of $4.75, indicating a potential upside of 41.79%. Given Arotech Corporation’s higher possible upside, analysts clearly believe Arotech Corporation is more favorable than Enersys.
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.
Enersys beats Arotech Corporation on 10 of the 13 factors compared between the two stocks.
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.
About Arotech Corporation
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.
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