American Defense Systems (OTCMKTS:ADFS) vs. Rocket Lab (NASDAQ:RKLB) Head to Head Contrast

American Defense Systems (OTCMKTS:ADFS) and Rocket Lab (NASDAQ:RKLB) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares American Defense Systems and Rocket Lab”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Defense Systems	N/A	N/A	N/A	N/A	N/A
Rocket Lab	$436.21 million	91.13	-$190.18 million	($0.38)	-195.84

American Defense Systems has higher earnings, but lower revenue than Rocket Lab.

Volatility and Risk

American Defense Systems has a beta of 9.86, suggesting that its share price is 886% more volatile than the S&P 500. Comparatively, Rocket Lab has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for American Defense Systems and Rocket Lab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Defense Systems	0	0	0	0	0.00
Rocket Lab	1	6	7	1	2.53

Rocket Lab has a consensus price target of $72.92, suggesting a potential downside of 2.02%. Given American Defense Systems’ higher probable upside, equities analysts plainly believe American Defense Systems is more favorable than Rocket Lab.

Profitability

This table compares American Defense Systems and Rocket Lab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Defense Systems	N/A	N/A	N/A
Rocket Lab	-35.64%	-27.26%	-12.21%

Insider and Institutional Ownership

71.8% of Rocket Lab shares are owned by institutional investors. 19.3% of American Defense Systems shares are owned by insiders. Comparatively, 11.9% of Rocket Lab shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

American Defense Systems beats Rocket Lab on 6 of the 11 factors compared between the two stocks.

About American Defense Systems

American Defense Systems, Inc., together with its subsidiaries, engages in the design and supply of transparent and opaque armor solutions for military and commercial applications. It offers crew protection kits that provide armor protection of operator compartments; VistaSteel transparent armor, a laminated glass that provides defensive barrier to protect against firearms, physical attack, and explosive blasts; VistaSteel opaque armors; lightweight armor systems; and VistaGuard windows, which are forced entry blast resistant windows, window frames, and transparent armor assemblies used to mitigate forced entry, ballistic, and terrorist threats in high visibility targets. The company also provides portable transparent ballistic shield, a bullet-resistant transparent mobile shield; heated ballistic ship windows; and hardware products, such as hinges, rotary and slam latches, combat locks, and egress windows. Its armor solutions for construction equipment, and tactical and non-tactical transport vehicles are designed to protect their occupants from landmines, hostile fire, and improvised explosive devices. In addition, the company offers engineering and consulting services; and develops and installs detention and security hardware, entry control and monitoring systems, intrusion detection systems, and security glass. Its products are used in transport and fighting vehicles, construction equipment, sea craft, and various fixed structures, which require ballistic and blast attenuation. American Defense Systems, Inc. serves various branches of the United States military, including the United States Department of Defense; and other United States government, law enforcement, and correctional agencies, as well as private sector customers. The company was founded in 1994 and is headquartered in Lillington, North Carolina.

About Rocket Lab

Rocket Lab USA, Inc., a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets. It also designs, manufactures, and sells Electron, a reusable orbital-class small rocket; and the Photon satellite platforms, as well as developing the Neutron 8-ton payload class launch vehicle; conducts remote launch activities; and designs and manufactures a range of components and subsystems for the Photon family of spacecraft and broader merchant spacecraft components. The company serves commercial, aerospace prime contractors, and government customers. Rocket Lab USA, Inc. was founded in 2006 and is headquartered in Long Beach, California.