Reviewing Ducommun (NYSE:DCO) & American Defense Systems (OTCMKTS:ADFS)

American Defense Systems (OTCMKTS:ADFS) and Ducommun (NYSE:DCO) are both aerospace companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Volatility and Risk

American Defense Systems has a beta of 9.84, meaning that its stock price is 884% more volatile than the S&P 500. Comparatively, Ducommun has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Profitability

This table compares American Defense Systems and Ducommun’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
Ducommun	-4.29%	7.70%	4.53%

Valuation & Earnings

This table compares American Defense Systems and Ducommun”s top-line 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
Ducommun	$786.55 million	2.10	$31.50 million	($2.34)	-47.17

Ducommun has higher revenue and earnings than American Defense Systems.

Analyst Ratings

This is a breakdown of current recommendations for American Defense Systems and Ducommun, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Defense Systems	0	0	0	0	0.00
Ducommun	0	2	5	0	2.71

Ducommun has a consensus target price of $113.00, indicating a potential upside of 2.37%. Given Ducommun’s stronger consensus rating and higher possible upside, analysts clearly believe Ducommun is more favorable than American Defense Systems.

Institutional and Insider Ownership

92.2% of Ducommun shares are owned by institutional investors. 19.3% of American Defense Systems shares are owned by insiders. Comparatively, 8.9% of Ducommun shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Ducommun beats American Defense Systems on 7 of the 10 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 Ducommun

Ducommun Incorporated provides engineering and manufacturing services for products and applications used primarily in the aerospace and defense, industrial, medical, and other industries in the United States. The company operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment provides cable assemblies and interconnect systems; printed circuit board assemblies; electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, printed circuit board assemblies, cable assemblies, wire harnesses, interconnect systems, lightning diversion strips, surge suppressors, conformal shields, and other assemblies. The segment also supplies engineered products, including illuminated pushbutton switches and panels for aviation and test systems; microwave and millimeter switches and filters for radio frequency systems and test instrumentation; and motors and resolvers for motion control. In addition, this segment provides engineering expertise for aerospace system design, development, integration, and testing. The Structural Systems segment designs, engineers, and manufactures contoured aluminum, titanium, and Inconel aero structure components; structural assembly products, such as winglets, engine components, and fuselage structural panels; aerodynamic systems; and metal and composite bonded structures and assemblies comprising aircraft wing spoilers, large fuselage skins, rotor blades on rotary-wing aircraft and components, flight control surfaces, engine components, ammunition handling systems, and magnetic seals. It serves commercial aircraft, military fixed-wing aircraft, military and commercial rotary-wing aircraft, and space programs, as well as industrial, medical, and other end-use markets. The company was founded in 1849 and is headquartered in Santa Ana, California.