Thales (OTCMKTS:THLEF) and DEFSEC Technologies (NASDAQ:DFSC) Head-To-Head Contrast

DEFSEC Technologies (NASDAQ:DFSC) and Thales (OTCMKTS:THLEF) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Profitability

This table compares DEFSEC Technologies and Thales’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DEFSEC Technologies	-195.30%	-160.64%	-95.30%
Thales	N/A	N/A	N/A

Institutional and Insider Ownership

21.4% of DEFSEC Technologies shares are held by institutional investors. Comparatively, 20.8% of Thales shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for DEFSEC Technologies and Thales, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DEFSEC Technologies	1	0	0	0	1.00
Thales	0	0	0	0	0.00

Valuation and Earnings

This table compares DEFSEC Technologies and Thales”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DEFSEC Technologies	$3.53 million	0.79	-$6.88 million	($25.94)	-0.08
Thales	N/A	N/A	N/A	$4.07	70.32

Thales has lower revenue, but higher earnings than DEFSEC Technologies. DEFSEC Technologies is trading at a lower price-to-earnings ratio than Thales, indicating that it is currently the more affordable of the two stocks.

Summary

Thales beats DEFSEC Technologies on 5 of the 8 factors compared between the two stocks.

About DEFSEC Technologies

DEFSEC develops and commercializes breakthrough next-generation tactical systems for military and security forces. The Company’s current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons. Other DEFSEC products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems, and all come integrated with TAK. The Company also has a new proprietary non-lethal product line branded PARA OPSTM with applications across all segments of the non-lethal market, including law enforcement. The Company is headquartered in Ottawa, Canada, with representative offices in London, UK and Abu Dhabi, UAE.

About Thales

Thales S.A. provides various solutions in the defence and security, aerospace and space, digital identity and security, and transport markets worldwide. It operates through Aerospace, Defence & Security, Digital Identity & Security, and Ground Transportation Systems business segments. The company offers communications, command, and control systems; mission services and support; protection and mission/combat systems; surveillance, detection, and intelligence systems; training and simulation solutions for air, land, naval, and joint forces; and digital identity and security solutions. It also provides air traffic management solutions; flight decks and avionics equipment and functions; in-flight entertainment, connectivity, and services; drone solutions; aerospace trading solutions; navigation solutions; support and services for civil aviation; and connectivity solutions. In addition, the company designs, operates, and delivers satellite-based systems for telecommunications, navigation, earth observation, environmental management, exploration, and science and orbital infrastructures; signaling, communications and supervision, and fare collection management systems and related services; cybersecurity and railway digitalization systems; and main line rail, and urban and intermodal mobility solutions. Further, it provides solutions for various markets and applications, including radiology, radio frequency, microwave sources, training and simulation solutions, lasers, and microelectronics solutions for science, industry, space, defense, automotive, railways, and energy conversion platforms. The company was formerly known as Thomson-CSF and changed its name to Thales S.A. in 2000. Thales S.A. was founded in 1893 and is headquartered in Meudon, France.