TASER International (NASDAQ: AAXN) and Mercury Systems (NASDAQ:MRCY) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Institutional & Insider Ownership

95.7% of TASER International shares are owned by institutional investors. Comparatively, 96.7% of Mercury Systems shares are owned by institutional investors. 3.7% of TASER International shares are owned by insiders. Comparatively, 3.5% of Mercury Systems 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 TASER International and Mercury Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TASER International 5.45% 10.47% 5.60%
Mercury Systems 6.09% 4.87% 3.56%

Valuation & Earnings

This table compares TASER International and Mercury Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TASER International $312.84 million 3.77 $33.89 million $0.32 69.69
Mercury Systems $408.59 million 5.54 $77.23 million $0.58 81.09

Mercury Systems has higher revenue and earnings than TASER International. TASER International is trading at a lower price-to-earnings ratio than Mercury Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for TASER International and Mercury Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TASER International 0 3 1 0 2.25
Mercury Systems 0 2 5 0 2.71

TASER International currently has a consensus target price of $27.50, suggesting a potential upside of 23.32%. Mercury Systems has a consensus target price of $42.20, suggesting a potential downside of 10.27%. Given TASER International’s higher probable upside, research analysts clearly believe TASER International is more favorable than Mercury Systems.

Risk & Volatility

TASER International has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Mercury Systems has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Summary

Mercury Systems beats TASER International on 9 of the 14 factors compared between the two stocks.

TASER International Company Profile

Axon Enterprise, Inc., formerly TASER International, Inc., is engaged in development, manufacture and sale of conducted electrical weapons (CEWs) for use by law enforcement, military, corrections and private security personnel, and by private individuals for personal defense. It is also engaged in development of connected wearable on-officer cameras. It operates through two segments: the sale of CEWs, accessories, and other related products and services (the TASER Weapons segment), and the Axon business, focused on devices, wearables, applications, cloud and mobile products (the Axon segment). Its TASER Weapons product line includes TASER X26P, TASER X2, TASER C2, TASER Pulse and Replacement Cartridges. Its hardware products include Axon Body 2, Axon Flex, Axon Fleet, Axon Interview, Axon Signal and Axon Dock. Its Axon software and mobile technologies include Evidence.com, Evidence.com for Prosecutors, Evidence Sync, Axon Capture, Axon View, Axon Five, Axon Convert and Axon Detect.

Mercury Systems Company Profile

Mercury Systems, Inc. is a commercial provider of secure processing subsystems designed and made in the United States. The Company’s solutions support a range of defense and intelligence programs. Its technologies include embedded processing modules and subsystems, radio frequency (RF) and microwave multi-function assemblies, as well as subsystems, and RF and microwave components. It designs and builds RF and microwave components and subsystems for the electronic warfare (EW), signals intelligence (SIGINT) and other communications requirements and applications. It offers analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. It designs, markets and sells software and middleware environments for the development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms. It also offers solutions in mission computing, safety-critical avionics and platform management.

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