Analyzing Astrotech (NASDAQ:ASTC) and American Defense Systems (OTCMKTS:ADFS)

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

Earnings and Valuation

This table compares Astrotech and American Defense Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astrotech	$1.05 million	5.11	-$13.85 million	($8.45)	-0.36
American Defense Systems	N/A	N/A	N/A	N/A	N/A

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Astrotech and American Defense Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astrotech	1	0	0	0	1.00
American Defense Systems	0	0	0	0	0.00

Given American Defense Systems’ higher probable upside, analysts plainly believe American Defense Systems is more favorable than Astrotech.

Risk and Volatility

Astrotech has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, American Defense Systems has a beta of 9.84, suggesting that its stock price is 884% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Astrotech	-1,069.89%	-59.71%	-51.64%
American Defense Systems	N/A	N/A	N/A

Institutional and Insider Ownership

24.4% of Astrotech shares are held by institutional investors. 16.8% of Astrotech shares are held by insiders. Comparatively, 19.3% of American Defense Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

American Defense Systems beats Astrotech on 6 of the 9 factors compared between the two stocks.

About Astrotech

Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AgLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person's breath. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.

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.