Comparing Applied Visual Sciences (OTCMKTS:APVS) & Mercury Systems (NASDAQ:MRCY)

Applied Visual Sciences (OTCMKTS:APVS) and Mercury Systems (NASDAQ:MRCY) are both aerospace companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Insider and Institutional Ownership

96.0% of Mercury Systems shares are owned by institutional investors. 33.0% of Applied Visual Sciences shares are owned by company insiders. Comparatively, 1.4% of Mercury Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Applied Visual Sciences and Mercury Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Visual Sciences	N/A	N/A	N/A
Mercury Systems	-1.46%	2.22%	1.32%

Analyst Ratings

This is a summary of recent ratings and price targets for Applied Visual Sciences and Mercury Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Visual Sciences	0	0	0	0	0.00
Mercury Systems	2	3	3	2	2.50

Mercury Systems has a consensus target price of $89.89, indicating a potential downside of 16.85%. Given Mercury Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Mercury Systems is more favorable than Applied Visual Sciences.

Valuation & Earnings

This table compares Applied Visual Sciences and Mercury Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Visual Sciences	N/A	N/A	N/A	N/A	N/A
Mercury Systems	$912.02 million	7.12	-$37.90 million	($0.24)	-450.46

Applied Visual Sciences has higher earnings, but lower revenue than Mercury Systems.

Volatility & Risk

Applied Visual Sciences has a beta of 6.98, meaning that its share price is 598% more volatile than the S&P 500. Comparatively, Mercury Systems has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Summary

Mercury Systems beats Applied Visual Sciences on 8 of the 11 factors compared between the two stocks.

About Applied Visual Sciences

Applied Visual Sciences, Inc., a software technology company, designs and develops computer-vision detection solutions based on image processing science for aviation/homeland security and healthcare markets. It utilizes imaging technologies and analytics to create integrated information management technology products and services that address problems for corporations and governmental agencies. The company offers PinPoint, an intelligent computer-vision automated target recognition technology for the detection of guns, explosives, and other threat items contained in baggage in the airport environment or for building security applications; and Signature Mapping platform technology for use in the imaging field of diagnostic radiology and pathology. It also provides Signature Mapping Detection System, an automated hardware-software laboratory solution used to operate various infectious disease applications through multi-threaded detection algorithms. In addition, the company offers Signature Mapping Tuberculosis Detection software, an automated hardware and software technology platform; and Signature Mapping Breast Cancer Detection, a breast cancer detection solution. Applied Visual Sciences, Inc. markets its products through direct sales and indirect distribution channels worldwide. The company was formerly known as Guardian Technologies International, Inc. and changed its name to Applied Visual Sciences, Inc. in July 2010. Applied Visual Sciences, Inc. was founded in 1989 and is based in Leesburg, Virginia.

About Mercury Systems

Mercury Systems, Inc., a technology company, manufactures and sells components, products, modules, and subsystems for aerospace and defense industries in the United States, Europe, and the Asia Pacific. Its products and solutions are deployed in approximately 300 programs with 25 defense contractors and commercial aviation customers. The company offers components, including power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, monolithic microwave integrated circuits, and memory and storage devices; modules and sub-assemblies, such as embedded processing boards, switched fabrics and boards, digital receivers, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers, as well as graphics and video boards; and integrated subsystems. It also designs and develops digital radio frequency memory units for various modern electronic warfare applications; radar environment simulation and test systems for defense and intelligence applications; and signals intelligence payloads and EO/IR technologies for small UAV platforms, as well as onboard UAV processor systems for real-time wide area motion imagery. The company was formerly known as Mercury Computer Systems, Inc. and changed its name to Mercury Systems, Inc. in November 2012. The company was incorporated in 1981 and is headquartered in Andover, Massachusetts.