Critical Analysis: Astrotech (NASDAQ:ASTC) vs. Axon Enterprise (NASDAQ:AXON)

Astrotech (NASDAQ:ASTC) and Axon Enterprise (NASDAQ:AXON) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

Astrotech has a beta of 4.47, meaning that its share price is 347% more volatile than the S&P 500. Comparatively, Axon Enterprise has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Valuation and Earnings

This table compares Astrotech and Axon Enterprise”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astrotech	$1.05 million	28.99	-$13.85 million	($8.41)	-2.01
Axon Enterprise	$2.78 billion	12.85	$124.66 million	$2.49	178.00

Axon Enterprise has higher revenue and earnings than Astrotech. Astrotech is trading at a lower price-to-earnings ratio than Axon Enterprise, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Astrotech and Axon Enterprise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astrotech	-1,397.82%	-81.85%	-65.46%
Axon Enterprise	6.90%	3.78%	1.76%

Insider and Institutional Ownership

24.4% of Astrotech shares are held by institutional investors. Comparatively, 79.1% of Axon Enterprise shares are held by institutional investors. 16.8% of Astrotech shares are held by insiders. Comparatively, 4.2% of Axon Enterprise shares are held 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.

Analyst Ratings

This is a summary of current ratings and target prices for Astrotech and Axon Enterprise, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astrotech	1	0	0	0	1.00
Axon Enterprise	0	2	16	1	2.95

Axon Enterprise has a consensus price target of $712.75, indicating a potential upside of 60.82%. Given Axon Enterprise’s stronger consensus rating and higher probable upside, analysts clearly believe Axon Enterprise is more favorable than Astrotech.

Summary

Axon Enterprise beats Astrotech on 12 of the 15 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 Axon Enterprise

Axon Enterprise, Inc. develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally. It operates through two segments, Software and Sensors, and TASER. The company also offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence. Its products include axon officer safety plan; taser 10, taser7, taser X26P, taser X2, taser 7 CQ, and civilian series; cameras, such as axon body, axon flex, axon fleet, axon air, axon signal sidearm, axon signal vehicle, axon interview, and axon interview portable kit; software, including axon records, evidence, standards, commander, performance, auto-transcribe, justice, investigate, respond, and justice, my90, and redaction assistant; mobile applications, and training services, as well as hardware extended warranties; and Axon docks, cartridges, and batteries. The company sells its products through its direct sales, distribution partners, online store, and third-party resellers. Axon Enterprise, Inc. has a strategic partnership with Fusus, Inc. to expand bility to aggregate live video, data, and sensor feeds. It serves law enforcement, federal, correction, fire, EMS, campus, justice healthcare, retail, private security, and personal safety industries. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. in April 2017. Axon Enterprise, Inc. was incorporated in 1993 and is headquartered in Scottsdale, Arizona.