Loar (NYSE:LOAR) versus Axon Enterprise (NASDAQ:AXON) Financial Analysis

Loar (NYSE:LOAR) and Axon Enterprise (NASDAQ:AXON) are both aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loar	$402.82 million	18.32	$22.23 million	$0.46	171.35
Axon Enterprise	$2.08 billion	28.34	$377.03 million	$4.05	185.63

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

Insider & Institutional Ownership

79.1% of Axon Enterprise shares are owned by institutional investors. 22.6% of Loar shares are owned by company insiders. Comparatively, 4.4% of Axon Enterprise shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Loar	9.82%	5.50%	3.82%
Axon Enterprise	13.64%	6.80%	3.18%

Analyst Ratings

This is a summary of recent recommendations and price targets for Loar and Axon Enterprise, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loar	0	0	3	0	3.00
Axon Enterprise	0	3	13	0	2.81

Loar presently has a consensus target price of $97.00, suggesting a potential upside of 23.07%. Axon Enterprise has a consensus target price of $837.69, suggesting a potential upside of 11.42%. Given Loar’s stronger consensus rating and higher possible upside, research analysts clearly believe Loar is more favorable than Axon Enterprise.

Volatility & Risk

Loar has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500. Comparatively, Axon Enterprise has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Summary

Axon Enterprise beats Loar on 10 of the 14 factors compared between the two stocks.

About Loar

Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, actuation devices, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was founded in 2017 and is headquartered in White Plains, New York.

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.