Critical Review: DEFSEC Technologies (DFSC) and Its Rivals

DEFSEC Technologies (NASDAQ:DFSC) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it compare to its competitors? We will compare DEFSEC Technologies to related businesses based on the strength of its dividends, institutional ownership, risk, earnings, analyst recommendations, profitability and valuation.

Earnings and Valuation

This table compares DEFSEC Technologies and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DEFSEC Technologies	$3.53 million	-$6.88 million	-0.34
DEFSEC Technologies Competitors	$8.51 billion	$577.31 million	29.21

DEFSEC Technologies’ competitors have higher revenue and earnings than DEFSEC Technologies. DEFSEC Technologies is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

DEFSEC Technologies has a beta of 2.76, meaning that its stock price is 176% more volatile than the S&P 500. Comparatively, DEFSEC Technologies’ competitors have a beta of 1.29, meaning that their average stock price is 29% more volatile than the S&P 500.

Profitability

This table compares DEFSEC Technologies and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DEFSEC Technologies	-120.97%	-144.66%	-82.13%
DEFSEC Technologies Competitors	-303.28%	-30.44%	-4.16%

Analyst Recommendations

This is a summary of recent ratings and price targets for DEFSEC Technologies and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DEFSEC Technologies	1	0	0	0	1.00
DEFSEC Technologies Competitors	2039	8013	12343	538	2.50

As a group, “Aerospace & Defense” companies have a potential upside of 36.66%. Given DEFSEC Technologies’ competitors stronger consensus rating and higher probable upside, analysts clearly believe DEFSEC Technologies has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

21.4% of DEFSEC Technologies shares are owned by institutional investors. Comparatively, 50.1% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 12.1% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

DEFSEC Technologies competitors beat DEFSEC Technologies on 11 of the 13 factors compared.

DEFSEC Technologies Company Profile

DEFSEC develops and commercializes breakthrough next-generation tactical systems for military and security forces. The Company’s current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons. Other DEFSEC products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems, and all come integrated with TAK. The Company also has a new proprietary non-lethal product line branded PARA OPSTM with applications across all segments of the non-lethal market, including law enforcement. The Company is headquartered in Ottawa, Canada, with representative offices in London, UK and Abu Dhabi, UAE.