Comparing EHang (NASDAQ:EH) and American Defense Systems (OTCMKTS:ADFS)

American Defense Systems (OTCMKTS:ADFS) and EHang (NASDAQ:EH) are both aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Risk and Volatility

American Defense Systems has a beta of 9.84, meaning that its stock price is 884% more volatile than the S&P 500. Comparatively, EHang has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Profitability

This table compares American Defense Systems and EHang’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Defense Systems	N/A	N/A	N/A
EHang	-67.07%	-27.80%	-15.90%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for American Defense Systems and EHang, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Defense Systems	0	0	0	0	0.00
EHang	1	1	5	1	2.75

EHang has a consensus price target of $23.48, suggesting a potential upside of 62.60%. Given EHang’s stronger consensus rating and higher possible upside, analysts plainly believe EHang is more favorable than American Defense Systems.

Institutional and Insider Ownership

94.0% of EHang shares are owned by institutional investors. 19.3% of American Defense Systems shares are owned by company insiders. Comparatively, 39.6% of EHang shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares American Defense Systems and EHang”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Defense Systems	N/A	N/A	N/A	N/A	N/A
EHang	$430.00 million	2.41	-$31.48 million	($0.56)	-25.79

American Defense Systems has higher earnings, but lower revenue than EHang.

Summary

EHang beats American Defense Systems on 7 of the 11 factors compared between the two stocks.

About American Defense Systems

American Defense Systems, Inc., together with its subsidiaries, engages in the design and supply of transparent and opaque armor solutions for military and commercial applications. It offers crew protection kits that provide armor protection of operator compartments; VistaSteel transparent armor, a laminated glass that provides defensive barrier to protect against firearms, physical attack, and explosive blasts; VistaSteel opaque armors; lightweight armor systems; and VistaGuard windows, which are forced entry blast resistant windows, window frames, and transparent armor assemblies used to mitigate forced entry, ballistic, and terrorist threats in high visibility targets. The company also provides portable transparent ballistic shield, a bullet-resistant transparent mobile shield; heated ballistic ship windows; and hardware products, such as hinges, rotary and slam latches, combat locks, and egress windows. Its armor solutions for construction equipment, and tactical and non-tactical transport vehicles are designed to protect their occupants from landmines, hostile fire, and improvised explosive devices. In addition, the company offers engineering and consulting services; and develops and installs detention and security hardware, entry control and monitoring systems, intrusion detection systems, and security glass. Its products are used in transport and fighting vehicles, construction equipment, sea craft, and various fixed structures, which require ballistic and blast attenuation. American Defense Systems, Inc. serves various branches of the United States military, including the United States Department of Defense; and other United States government, law enforcement, and correctional agencies, as well as private sector customers. The company was founded in 1994 and is headquartered in Lillington, North Carolina.

About EHang

EHang Holdings Limited operates as an autonomous aerial vehicle (AAV) technology platform company in the People's Republic of China, East Asia, West Asia, Europe, and internationally. It designs, develops, manufactures, sells, and operates AAVs, as well as their supporting systems and infrastructure for various industries and applications, including passenger transportation, logistics, smart city management, and aerial media solutions. The company was incorporated in 2014 and is headquartered in Guangzhou, the People's Republic of China.