Analyzing Axon Enterprise (NASDAQ:AXON) and Rolls-Royce Holdings PLC (OTCMKTS:RYCEY)

Axon Enterprise (NASDAQ:AXON) and Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) are both large-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Axon Enterprise and Rolls-Royce Holdings PLC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axon Enterprise	0	3	15	0	2.83
Rolls-Royce Holdings PLC	0	0	4	1	3.20

Axon Enterprise presently has a consensus price target of $725.25, indicating a potential upside of 37.42%. Given Axon Enterprise’s higher possible upside, research analysts clearly believe Axon Enterprise is more favorable than Rolls-Royce Holdings PLC.

Volatility and Risk

Axon Enterprise has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Rolls-Royce Holdings PLC has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Earnings & Valuation

This table compares Axon Enterprise and Rolls-Royce Holdings PLC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axon Enterprise	$2.78 billion	15.30	$124.66 million	$2.49	211.95
Rolls-Royce Holdings PLC	$27.96 billion	5.92	$7.70 billion	N/A	N/A

Rolls-Royce Holdings PLC has higher revenue and earnings than Axon Enterprise.

Insider & Institutional Ownership

79.1% of Axon Enterprise shares are owned by institutional investors. Comparatively, 0.1% of Rolls-Royce Holdings PLC shares are owned by institutional investors. 4.2% of Axon Enterprise shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Axon Enterprise and Rolls-Royce Holdings PLC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axon Enterprise	6.90%	3.78%	1.76%
Rolls-Royce Holdings PLC	N/A	N/A	N/A

Summary

Axon Enterprise beats Rolls-Royce Holdings PLC on 9 of the 13 factors compared between the two stocks.

About Axon Enterprise

Axon Enterprise, Inc. develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally. It operates through two segments, Software and Sensors, and TASER. The company also offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence. Its products include axon officer safety plan; taser 10, taser7, taser X26P, taser X2, taser 7 CQ, and civilian series; cameras, such as axon body, axon flex, axon fleet, axon air, axon signal sidearm, axon signal vehicle, axon interview, and axon interview portable kit; software, including axon records, evidence, standards, commander, performance, auto-transcribe, justice, investigate, respond, and justice, my90, and redaction assistant; mobile applications, and training services, as well as hardware extended warranties; and Axon docks, cartridges, and batteries. The company sells its products through its direct sales, distribution partners, online store, and third-party resellers. Axon Enterprise, Inc. has a strategic partnership with Fusus, Inc. to expand bility to aggregate live video, data, and sensor feeds. It serves law enforcement, federal, correction, fire, EMS, campus, justice healthcare, retail, private security, and personal safety industries. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. in April 2017. Axon Enterprise, Inc. was incorporated in 1993 and is headquartered in Scottsdale, Arizona.

About Rolls-Royce Holdings PLC

Rolls-Royce Holdings plc develops and delivers complex power and propulsion solutions for air, sea, and land in the United Kingdom and internationally. The company operates through four segments: Civil Aerospace, Defence, Power Systems, and New Markets. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services. The Power Systems segment engages in the development, manufacture, marketing, and sale of integrated solutions for onsite power and propulsion under the mtu brand name. The New Markets segment develops, manufactures, and sells small modular reactor and new electrical power solutions. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom.