Critical Analysis: Carpenter Technology (NYSE:CRS) and Duke Robotics (NASDAQ:DUKR)

Duke Robotics (NASDAQ:DUKR) and Carpenter Technology (NYSE:CRS) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

92.0% of Carpenter Technology shares are held by institutional investors. 23.5% of Duke Robotics shares are held by insiders. Comparatively, 2.9% of Carpenter Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Duke Robotics has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500. Comparatively, Carpenter Technology has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Duke Robotics and Carpenter Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duke Robotics	1	0	1	0	2.00
Carpenter Technology	0	2	8	0	2.80

Duke Robotics currently has a consensus target price of $12.00, indicating a potential upside of 126.84%. Carpenter Technology has a consensus target price of $577.25, indicating a potential upside of 45.48%. Given Duke Robotics’ higher possible upside, analysts clearly believe Duke Robotics is more favorable than Carpenter Technology.

Profitability

This table compares Duke Robotics and Carpenter Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duke Robotics	N/A	-146.36%	-86.13%
Carpenter Technology	16.96%	26.46%	15.02%

Valuation & Earnings

This table compares Duke Robotics and Carpenter Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duke Robotics	$380,000.00	47.75	-$1.24 million	($0.67)	-7.90
Carpenter Technology	$3.12 billion	6.29	$529.80 million	$10.52	37.72

Carpenter Technology has higher revenue and earnings than Duke Robotics. Duke Robotics is trading at a lower price-to-earnings ratio than Carpenter Technology, indicating that it is currently the more affordable of the two stocks.

Summary

Carpenter Technology beats Duke Robotics on 10 of the 14 factors compared between the two stocks.

About Duke Robotics

Duke Robotics Corp (Nasdaq: DUKR) is a Fort Lauderdale, Florida–based company that develops advanced stabilization and autonomous robotic drone systems for both civilian and defense markets. On the civilian side, its Insulator Cleaning Drone (IC Drone) is a drone-enabled system for cleaning and monitoring high-voltage electric utility insulators, and its AEROTRACE platform uses AI-powered aerial monitoring to help infrastructure operators assess assets and prioritize maintenance. In defense, the company holds the intellectual property behind the Bird of Prey, a fully stabilized remote weapon system designed for non-line-of-sight and stand-off engagements, which is marketed by Elbit Systems Land Ltd. under the brand name Bird of Prey (formerly known as TIKAD).

About Carpenter Technology

Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts. It serves to aerospace, defense, medical, transportation, energy, industrial, and consumer markets. The company was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.