Mercury Systems (NASDAQ: MRCY) is one of 45 public companies in the “Aerospace & Defense” industry, but how does it contrast to its rivals? We will compare Mercury Systems to similar companies based on the strength of its profitability, valuation, institutional ownership, analyst recommendations, risk, dividends and earnings.

Profitability

This table compares Mercury Systems and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mercury Systems 9.14% 6.51% 5.12%
Mercury Systems Competitors -4.90% 24.13% 3.92%

Institutional & Insider Ownership

96.4% of Mercury Systems shares are owned by institutional investors. Comparatively, 70.3% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 3.5% of Mercury Systems shares are owned by insiders. Comparatively, 7.1% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Mercury Systems and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mercury Systems 0 2 5 0 2.71
Mercury Systems Competitors 478 2126 2354 84 2.41

Mercury Systems presently has a consensus target price of $50.20, indicating a potential upside of 0.42%. As a group, “Aerospace & Defense” companies have a potential upside of 3.88%. Given Mercury Systems’ rivals higher probable upside, analysts plainly believe Mercury Systems has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Mercury Systems and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Mercury Systems $408.59 million $77.23 million 58.13
Mercury Systems Competitors $8.68 billion $1.21 billion 80.76

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

Risk & Volatility

Mercury Systems has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Mercury Systems’ rivals have a beta of 1.06, indicating that their average share price is 6% more volatile than the S&P 500.

Summary

Mercury Systems rivals beat Mercury Systems on 8 of the 13 factors compared.

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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