Critical Analysis: Elbit Systems (NASDAQ:ESLT) versus Sypris Solutions (NASDAQ:SYPR)

Sypris Solutions (NASDAQ:SYPR – Get Free Report) and Elbit Systems (NASDAQ:ESLT – Get Free Report) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Earnings and Valuation

This table compares Sypris Solutions and Elbit Systems”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sypris Solutions $119.89 million 0.34 -$6.34 million ($0.47) -3.81
Elbit Systems $7.94 billion 4.15 $534.34 million $13.27 55.89

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

Institutional and Insider Ownership

44.7% of Sypris Solutions shares are held by institutional investors. Comparatively, 17.9% of Elbit Systems shares are held by institutional investors. 47.9% of Sypris Solutions shares are held by company insiders. Comparatively, 0.8% of Elbit Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Sypris Solutions and Elbit Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sypris Solutions -9.23% -67.14% -9.87%
Elbit Systems 7.44% 16.66% 5.39%

Volatility & Risk

Sypris Solutions has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Elbit Systems has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Sypris Solutions and Elbit Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sypris Solutions 1 0 0 0 1.00
Elbit Systems 0 5 0 0 2.00

Elbit Systems has a consensus target price of $840.00, suggesting a potential upside of 13.27%. Given Elbit Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Elbit Systems is more favorable than Sypris Solutions.

Summary

Elbit Systems beats Sypris Solutions on 9 of the 12 factors compared between the two stocks.

About Sypris Solutions

(Get Free Report)

Sypris Solutions, Inc. engages in the provision of truck components, oil and gas pipeline components, and aerospace and defense electronics. It operates through Sypris Technologies and Sypris Electronics segments. The Sypris Technologies segment is involved in selling of forged, machined, welded, and heat-treated steel components primarily for the heavy commercial vehicle and high-pressure energy pipeline applications. The Sypris Electronics segment includes circuit card and full box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability and design to specification work. The company was founded in 1997 and is headquartered in Louisville, KY.

About Elbit Systems

(Get Free Report)

Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel. The company operates through Aerospace, C4I and Cyber, ISTAR and EW, Land, and Elbit Systems of America segments. It also offers military aircraft and helicopter systems; commercial aviation systems and aerostructures; unmanned aircraft systems; electro-optic, night vision, and countermeasures systems; naval systems; land vehicle systems; munitions, such as precision munitions for land, air, and sea applications; command, control, communications, computer, intelligence, surveillance and reconnaissance, and cyber systems; electronic warfare and signal intelligence systems; and other commercial activities. In addition, the company manufactures and sells data links and radio communication systems and equipment, and cyber intelligence, autonomous, and homeland security solutions. Further, it provides various electronic warfare and signal intelligence systems, and laser systems; armored vehicle and other platforms survivability and protection systems, artillery, and mortar systems, as well as provides various training and support services. Additionally, the company offers products and systems solutions to military, homeland security, medical instrumentation, and commercial aviation clients. It markets its systems and products as a prime contractor or subcontractor to various governments and companies. It also has operations in Israel, North America, Europe, Latin America, the Asia-Pacific, and internationally. The company was incorporated in 1966 and is based in Haifa, Israel.

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