Critical Analysis: Mercury Systems (NASDAQ:MRCY) and BETA Technologies (NYSE:BETA)

BETA Technologies (NYSE:BETA – Get Free Report) and Mercury Systems (NASDAQ:MRCY – Get Free Report) are both mid-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Profitability

This table compares BETA Technologies and Mercury Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BETA Technologies -1,913.91% -96.24% -48.20%
Mercury Systems -3.02% 1.29% 0.78%

Analyst Ratings

This is a summary of recent ratings and price targets for BETA Technologies and Mercury Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BETA Technologies 1 1 9 0 2.73
Mercury Systems 2 4 5 2 2.54

BETA Technologies presently has a consensus target price of $31.11, suggesting a potential upside of 49.04%. Mercury Systems has a consensus target price of $112.80, suggesting a potential upside of 36.23%. Given BETA Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe BETA Technologies is more favorable than Mercury Systems.

Institutional & Insider Ownership

96.0% of Mercury Systems shares are owned by institutional investors. 24.5% of BETA Technologies shares are owned by insiders. Comparatively, 1.0% of Mercury Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares BETA Technologies and Mercury Systems”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BETA Technologies $35.62 million 132.12 -$745.87 million ($13.02) -1.60
Mercury Systems $983.62 million 5.12 -$29.67 million ($0.50) -165.60

Mercury Systems has higher revenue and earnings than BETA Technologies. Mercury Systems is trading at a lower price-to-earnings ratio than BETA Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Mercury Systems beats BETA Technologies on 8 of the 14 factors compared between the two stocks.

About BETA Technologies

(Get Free Report)

BETA Technologies Inc. is an electric aerospace company. It involved in designing, manufacturing and selling high-performance electric aircraft, advanced electric propulsion systems, components and charging systems. BETA Technologies Inc. is based in SOUTH BURLINGTON.

About Mercury Systems

(Get Free Report)

Mercury Systems, Inc., a technology company, manufactures and sells components, products, modules, and subsystems for aerospace and defense industries in the United States, Europe, and the Asia Pacific. Its products and solutions are deployed in approximately 300 programs with 25 defense contractors and commercial aviation customers. The company offers components, including power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, monolithic microwave integrated circuits, and memory and storage devices; modules and sub-assemblies, such as embedded processing boards, switched fabrics and boards, digital receivers, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers, as well as graphics and video boards; and integrated subsystems. It also designs and develops digital radio frequency memory units for various modern electronic warfare applications; radar environment simulation and test systems for defense and intelligence applications; and signals intelligence payloads and EO/IR technologies for small UAV platforms, as well as onboard UAV processor systems for real-time wide area motion imagery. The company was formerly known as Mercury Computer Systems, Inc. and changed its name to Mercury Systems, Inc. in November 2012. The company was incorporated in 1981 and is headquartered in Andover, Massachusetts.

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