Critical Review: Axon Enterprise (NASDAQ:AXON) and Momentus (NASDAQ:MNTS)

Axon Enterprise (NASDAQ:AXON) and Momentus (NASDAQ:MNTS) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Profitability

This table compares Axon Enterprise and Momentus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axon Enterprise	6.19%	2.84%	1.36%
Momentus	-927.68%	-90.19%	-60.51%

Insider and Institutional Ownership

79.1% of Axon Enterprise shares are held by institutional investors. Comparatively, 9.2% of Momentus shares are held by institutional investors. 4.2% of Axon Enterprise shares are held by company insiders. Comparatively, 0.1% of Momentus shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Axon Enterprise and Momentus”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axon Enterprise	$3.22 billion	10.04	$124.66 million	$2.41	165.14
Momentus	$1.11 million	48.67	-$30.47 million	($22.14)	-0.11

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

Volatility and Risk

Axon Enterprise has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Momentus has a beta of 2.43, indicating that its stock price is 143% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Axon Enterprise and Momentus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axon Enterprise	0	2	14	1	2.94
Momentus	1	0	1	0	2.00

Axon Enterprise currently has a consensus price target of $707.07, suggesting a potential upside of 77.66%. Momentus has a consensus price target of $8.00, suggesting a potential upside of 225.20%. Given Momentus’ higher possible upside, analysts clearly believe Momentus is more favorable than Axon Enterprise.

Summary

Axon Enterprise beats Momentus on 12 of the 15 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 Momentus

Momentus Inc., together with its subsidiaries, operates as a commercial space company. The company focuses on providing in-space infrastructure services, including in-space transportation, hosted payloads, and in-orbit services. Its principal and target customers include satellite operators. The company is headquartered in San Jose, California.