Critical Comparison: Arotech (ARTX) and Its Rivals

Arotech (NASDAQ: ARTX) is one of 25 public companies in the “Miscellaneous electrical machinery, equipment, & supplies” industry, but how does it contrast to its rivals? We will compare Arotech to similar companies based on the strength of its risk, valuation, dividends, earnings, profitability, institutional ownership and analyst recommendations.

Valuation & Earnings

How to Become a New Pot Stock Millionaire

This table compares Arotech and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Arotech $98.72 million $3.83 million 20.94
Arotech Competitors $793.44 million $37.86 million 4.98

Arotech’s rivals have higher revenue and earnings than Arotech. Arotech is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Arotech and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arotech 3.88% 5.98% 3.61%
Arotech Competitors -0.24% -138.93% 17.98%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Arotech and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arotech 0 0 1 0 3.00
Arotech Competitors 43 280 456 12 2.55

Arotech currently has a consensus price target of $4.50, indicating a potential upside of 34.33%. As a group, “Miscellaneous electrical machinery, equipment, & supplies” companies have a potential upside of 14.42%. Given Arotech’s stronger consensus rating and higher probable upside, analysts plainly believe Arotech is more favorable than its rivals.

Insider and Institutional Ownership

22.3% of Arotech shares are owned by institutional investors. Comparatively, 44.3% of shares of all “Miscellaneous electrical machinery, equipment, & supplies” companies are owned by institutional investors. 9.2% of Arotech shares are owned by company insiders. Comparatively, 17.4% of shares of all “Miscellaneous electrical machinery, equipment, & supplies” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Arotech has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Arotech’s rivals have a beta of 0.76, meaning that their average stock price is 24% less volatile than the S&P 500.

Summary

Arotech beats its rivals on 7 of the 13 factors compared.

Arotech Company Profile

Arotech Corporation is a defense and security products and services company, engaged in providing interactive simulation for military, law enforcement and commercial markets, and batteries and charging systems for the military, commercial and medical markets. The Company operates through two segments: Training and Simulation Division, and Power Systems Division. The Company’s Training and Simulation Division develops, manufactures and markets multimedia and interactive digital solutions for engineering, use-of-force training and operator training of military, law enforcement, security, emergency services and other personnel. The Company’s Power Systems Division provides battery solutions, energy management and power distribution technologies and product design and manufacturing services for the aerospace, defense, law enforcement, homeland security markets, and it manufactures and sells rechargeable batteries for defense and security products and medical and industrial applications.

Receive News & Ratings for Arotech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Arotech and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply