Reviewing Palladyne AI (NASDAQ:STRCW) and Twin Disc (NASDAQ:TWIN)

Palladyne AI (NASDAQ:STRCW) and Twin Disc (NASDAQ:TWIN) are both manufacturing companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Valuation & Earnings

This table compares Palladyne AI and Twin Disc”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palladyne AI	N/A	N/A	N/A	N/A	N/A
Twin Disc	$321.40 million	0.28	$10.99 million	$0.67	9.42

Twin Disc has higher revenue and earnings than Palladyne AI.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Palladyne AI and Twin Disc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palladyne AI	0	0	0	0	0.00
Twin Disc	0	0	1	0	3.00

Twin Disc has a consensus target price of $12.00, suggesting a potential upside of 90.17%. Given Twin Disc’s stronger consensus rating and higher possible upside, analysts plainly believe Twin Disc is more favorable than Palladyne AI.

Profitability

This table compares Palladyne AI and Twin Disc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palladyne AI	N/A	N/A	N/A
Twin Disc	2.92%	4.24%	2.09%

Insider and Institutional Ownership

65.3% of Twin Disc shares are owned by institutional investors. 21.3% of Twin Disc shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Twin Disc beats Palladyne AI on 9 of the 9 factors compared between the two stocks.

About Palladyne AI

Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training. It serves customers from various industries, such as industrial manufacturing, warehousing and logistics, defense, infrastructure maintenance and repair, energy, aerospace and aviation, and others. The company was formerly known as Sarcos Technology and Robotics Corporation and changed its name to Palladyne AI Corp. in March 2024. Palladyne AI Corp. was founded in 2017 and is headquartered in Salt Lake City, Utah.

About Twin Disc

Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment in the United States, the Netherlands, China, Australia, Italy, and internationally. The company operates in two segments, Manufacturing and Distribution. Its principal products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also provides third-party manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial marine, patrol, and military marine markets, as well as in the energy and natural resources, government, agriculture, recycling, construction, oil and gas, and industrial markets. The company was incorporated in 1918 and is headquartered in Milwaukee, Wisconsin.