Aterian (NASDAQ:ATER – Get Free Report) and Leonardo (OTCMKTS:FINMY – Get Free Report) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Aterian and Leonardo, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aterian | 1 | 1 | 0 | 0 | 1.50 |
| Leonardo | 0 | 4 | 3 | 1 | 2.63 |
Aterian currently has a consensus price target of $4.00, suggesting a potential upside of 464.17%. Given Aterian’s higher possible upside, equities research analysts plainly believe Aterian is more favorable than Leonardo.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aterian | $78.45 million | 0.09 | -$11.86 million | ($1.61) | -0.44 |
| Leonardo | $19.22 billion | 1.68 | $1.16 billion | N/A | N/A |
Leonardo has higher revenue and earnings than Aterian.
Risk & Volatility
Aterian has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, Leonardo has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.
Insider and Institutional Ownership
7.0% of Aterian shares are owned by institutional investors. 19.5% of Aterian shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Aterian and Leonardo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aterian | -15.73% | -47.45% | -26.68% |
| Leonardo | N/A | N/A | N/A |
Summary
Leonardo beats Aterian on 10 of the 13 factors compared between the two stocks.
About Aterian
Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. Its platform offers home and kitchen appliances; kitchenware; cooling and air quality appliances, such as dehumidifiers; health and beauty products; and essential oils under the Squatty Potty, hOmeLabs, Mueller, Pursteam, Healing Solutions, and Photo Paper Direct brand names. The company primarily serves individual online consumers through online retail channels, such as Amazon and Walmart, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in Summit, New Jersey.
About Leonardo
Leonardo S.p.a., an industrial and technological company, engages in the helicopters, defense electronics and security, aircraft, aerostructures, and space sectors in Italy, the United Kingdom, rest of Europe, the United States, and internationally. The company offers a range of helicopters for battlefield, combat, maritime, training, VIP/executive transport, medical and rescue, security, energy, and utility services, as well as provides support and training services. It also provides trainers, fighters, multi-mission transport, and multi-mission surveillance aircraft; command and controls, radars and sensors, optronics, electronic warfare, communication systems, avionics, air traffic management, and defense systems; and cyber security and resilience, critical communications, digitalization, and monitoring. In addition, the company offers geoinformation, satellite communications, ground systems, navigation, and satellite operations; interplanetary probes and orbiting modules; and robotics and drilling, electro-optics, laser transmitters, atomic clocks, photovoltaic panels, power distributors and amplifiers, attitude sensors, and orbital micropropulsion. Further, it engages in the production and assembly of major structural composite and metallic components for commercial and military aircraft, helicopters, and unmanned aircraft, as well as provides automation of airport baggage handling, mail sorting centers, and courier logistics hubs. The company was formerly known as Leonardo Finmeccanica S.p.a. and changed its name to Leonardo S.p.a. in January 2017. Leonardo S.p.a. was founded in 1948 and is headquartered in Rome, Italy.
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