Reviewing Video Display (VIDE) & Mercury Systems (MRCY)

Video Display (OTCMKTS:VIDE) and Mercury Systems (NASDAQ:MRCY) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Risk and Volatility

Video Display has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Mercury Systems has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Earnings & Valuation

This table compares Video Display and Mercury Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Video Display $11.94 million 0.52 -$2.93 million N/A N/A
Mercury Systems $493.18 million 4.73 $40.88 million $1.13 42.66

Mercury Systems has higher revenue and earnings than Video Display.

Profitability

This table compares Video Display and Mercury Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Video Display -19.65% -48.89% -28.30%
Mercury Systems 5.72% 6.97% 5.21%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Video Display and Mercury Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Video Display 0 0 0 0 N/A
Mercury Systems 1 2 4 0 2.43

Mercury Systems has a consensus target price of $53.83, indicating a potential upside of 11.66%. Given Mercury Systems’ higher possible upside, analysts clearly believe Mercury Systems is more favorable than Video Display.

Summary

Mercury Systems beats Video Display on 8 of the 9 factors compared between the two stocks.

About Video Display

Video Display Corporation, together with its subsidiaries, designs, engineers, manufactures, markets, distributes, and installs display products and systems, and components for government, military, aerospace, medical, industrial, and commercial organizations worldwide. The company operates through four divisions: Simulation and Training Products, Cyber Secure Products, Data Display CRTs, and Broadcast and Control Center Products. It offers a range of digital projector display units for use in training and simulation, military, medical, and industrial applications. The company also provides advanced TEMPEST technology security products; keyboard products; and various contract services, including the design and testing solutions for defense and niche commercial uses. In addition, it manufactures and distributes cathode ray tubes (CRTs) using new and recycled CRT glass bulbs primarily in the replacement market for use in data display screens, such as computer terminal monitors, medical monitoring equipment, and various other data display applications, as well as in television sets; distributes new CRTs and other electronic tubes purchased from original equipment manufacturers; and offers high-end visual display products for use in video walls and command and control centers. The company markets its products directly to original equipment manufacturers and their service organizations. Video Display Corporation was founded in 1975 and is headquartered in Tucker, Georgia.

About Mercury Systems

Mercury Systems, Inc. provides sensor and safety critical mission processing subsystems for various critical defense and intelligence programs in the United States. Its products and solutions are deployed in approximately 300 programs with 25 defense contractors. The company's principal programs include Aegis, Patriot, Surface Electronic Warfare Improvement Program, Gorgon Stare, Predator, F-35, Reaper, F-16 SABR, E2D Hawkeye, Paveway, Filthy Buzzard, PGK, ProVision, P1, and AIDEWS. It also designs, markets, and licenses software and middleware environments under the MultiCore Plus name to enhance development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms. In addition, the company offers hardware products, including components, such as power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, monolithic microwave integrated circuits, and memory and storage devices; embedded processing modules and boards, switch fabric boards, high speed input/output boards, digital receiver boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers, as well as graphics and video processing, and Ethernet and input-output boards; and integrated subsystems. The company was formerly known as Mercury Computer Systems, Inc. and changed its name to Mercury Systems, Inc. in November 2012. Mercury Systems, Inc. was founded in 1981 and is headquartered in Andover, Massachusetts.

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