Contrasting Ondas (NASDAQ:ONDS) and Northrop Grumman (NYSE:NOC)

Ondas (NASDAQ:ONDS) and Northrop Grumman (NYSE:NOC) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Earnings and Valuation

This table compares Ondas and Northrop Grumman”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ondas	$50.73 million	72.54	-$132.02 million	($0.07)	-90.29
Northrop Grumman	$43.59 billion	1.82	$4.18 billion	$31.70	17.63

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ondas and Northrop Grumman, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ondas	1	1	10	0	2.75
Northrop Grumman	1	9	15	0	2.56

Ondas currently has a consensus target price of $16.89, indicating a potential upside of 167.19%. Northrop Grumman has a consensus target price of $643.74, indicating a potential upside of 15.20%. Given Ondas’ stronger consensus rating and higher probable upside, research analysts clearly believe Ondas is more favorable than Northrop Grumman.

Profitability

This table compares Ondas and Northrop Grumman’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ondas	93.55%	-14.20%	-7.15%
Northrop Grumman	10.37%	23.46%	8.06%

Institutional and Insider Ownership

37.7% of Ondas shares are owned by institutional investors. Comparatively, 83.4% of Northrop Grumman shares are owned by institutional investors. 1.7% of Ondas shares are owned by insiders. Comparatively, 0.2% of Northrop Grumman shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Ondas has a beta of 2.92, suggesting that its share price is 192% more volatile than the S&P 500. Comparatively, Northrop Grumman has a beta of -0.11, suggesting that its share price is 111% less volatile than the S&P 500.

Summary

Northrop Grumman beats Ondas on 7 of the 13 factors compared between the two stocks.

About Ondas

Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. It operates in two segments, Ondas Networks and Ondas Autonomous Systems. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Optimus, an AI-powered drone with imaging payloads; the Airbase, a ruggedized weatherproof base station for housing, data processing, and cloud transfer; Insightful, a secure web portal and API, which enables remote interaction with the system, data, and resulting analytics anywhere in the world; and the Raider, a counter-drone system for security and the protection of critical infrastructure, assets, and people from the threat of hostile drones. It serves users in rail, energy, mining, agriculture, public safety, critical infrastructure, and government markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.

About Northrop Grumman

Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company’s Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems. Its Defense Systems segment designs, develops, integrates, and produces tactical weapons and missile defense solutions, and provides sustainment, modernization, and training services for manned and unmanned aircraft and electronics systems. It also offers integrated, all-domain command, and control battle management systems, precision strike weapons; high speed air-breathing and hypersonic systems; high-performance gun systems, ammunition, precision munitions and advanced fuzes; aircraft and mission systems logistics support, sustainment, operations and modernization; and warfighter training services. The company’s Mission Systems segment offers command, control, communications and computers, intelligence, surveillance, and reconnaissance systems; radar, electro-optical/infrared and acoustic sensors; electronic warfare systems; advanced communications and network systems; cyber solutions; intelligence processing systems; navigation; and maritime power, propulsion, and payload launch systems. Its Space Systems segment offers satellites, spacecraft systems, subsystems, sensors, and payloads; ground systems; missile defense systems and interceptors; launch vehicles and related propulsion systems; and strategic missiles. Northrop Grumman Corporation was founded in 1939 and is based in Falls Church, Virginia.