Garmin (NASDAQ:GRMN – Get Rating) and Leonardo DRS (NASDAQ:DRS – Get Rating) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.
Risk & Volatility
Garmin has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Leonardo DRS has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
Insider & Institutional Ownership
63.3% of Garmin shares are owned by institutional investors. Comparatively, 61.4% of Leonardo DRS shares are owned by institutional investors. 20.3% of Garmin shares are owned by insiders. Comparatively, 1.0% of Leonardo DRS shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Garmin and Leonardo DRS’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Garmin||$4.86 billion||4.10||$973.59 million||$5.00||20.81|
|Leonardo DRS||$2.69 billion||1.46||$405.00 million||$2.16||6.95|
Garmin has higher revenue and earnings than Leonardo DRS. Leonardo DRS is trading at a lower price-to-earnings ratio than Garmin, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Garmin and Leonardo DRS, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Leonardo DRS has a consensus target price of $17.67, indicating a potential upside of 17.62%. Given Leonardo DRS’s higher possible upside, analysts plainly believe Leonardo DRS is more favorable than Garmin.
Garmin beats Leonardo DRS on 11 of the 13 factors compared between the two stocks.
Garmin Ltd. is a holding company, which engages in the provision of navigation, communications and information devices, most of which are enabled by Global Positioning System (GPS) technology. It operates through the following segments: Marine, Outdoor, Fitness, Auto OEM, Consumer Auto, and Aviation. The Marine segment manufactures and offers recreational marine electronics such as cartography, Sounders, Radar, Autopilot Systems and Sailing. The Outdoor segment offers products designed for use in outdoor activities such as Outdoor Handhelds, Adventure Watches, Golf Devices, Dog Tracking & Training Device, Garmin Connect & Garmin Connect Mobile, and Connect IQ. The Fitness segment refers to the products designed for use in fitness and activity tracking such as Running & Multi-Sport Watches, Cycling Computers, Power Meters, Safety & Awareness, and Activity Tracking Devices. The Auto OEM and Consumer Auto segments offer products designed for use in the auto market such as Personal Navigation Devices, Original Equipment Manufacturer (OEM) Solutions, and Cameras. The Aviation segment provides solutions to aircraft manufacturers, existing aircraft owners and operators, as well as governm
About Leonardo DRS
Leonardo DRS, Inc. engages in the provision of defense products and technologies. It develops and manufactures defense products for the U.S. military, intelligence agencies and allies around the world. Its broad technology portfolio focuses on advanced sensing, network computing, force protection, and electrical power and propulsion, as well as a range of key defense priorities. The company operates through two segments: Advanced Sensors & Computing, and Integrated Mission Systems. The Advanced Sensors & Computing segment has been aligned to push towards a more autonomous future. It consists of six business units, which include Airborne & Intelligence Systems, Daylight Solutions, DRS RADA Technologies, Electro-Optical & Infrared Systems, Land Electronics, and Naval Electronics. The Integrated Mission Systems segment consists of both a ground vehicle integrator and naval power and propulsion system provider. Leonardo DRS was founded by Leonard Newman and David E. Gross in 1969 and is headquartered in Arlington, VA.
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