Critical Survey: Saab AB (publ) (OTCMKTS:SAABF) versus DEFSEC Technologies (NASDAQ:DFSC)

Saab AB (publ) (OTCMKTS:SAABF) and DEFSEC Technologies (NASDAQ:DFSC) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares Saab AB (publ) and DEFSEC Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saab AB (publ)	N/A	N/A	N/A	$7.94	6.93
DEFSEC Technologies	$3.53 million	1.42	-$6.88 million	($6.37)	-0.55

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

Insider & Institutional Ownership

21.4% of Saab AB (publ) shares are owned by institutional investors. Comparatively, 21.4% of DEFSEC Technologies shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Saab AB (publ) and DEFSEC Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saab AB (publ)	0	0	0	0	0.00
DEFSEC Technologies	1	0	0	0	1.00

Profitability

This table compares Saab AB (publ) and DEFSEC Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saab AB (publ)	N/A	N/A	N/A
DEFSEC Technologies	-141.81%	-143.21%	-80.23%

Summary

Saab AB (publ) beats DEFSEC Technologies on 6 of the 8 factors compared between the two stocks.

About Saab AB (publ)

Saab AB (publ) provides products, services, and solutions for military defense, aviation, and civil security markets worldwide. The company operates through Aeronautics, Dynamics, Surveillance, Kockums, and Combitech segments. The company develops military aviation technology, as well as conducts studies on manned and unmanned aircraft. It also provides ground combat weapons, missile systems, torpedoes, unmanned underwater vehicles, training and simulation systems, and signature management systems for armed forces; and niche products for the civil and defense market, such as underwater vehicles for the offshore industry. In addition, the company offers solutions for safety and security, surveillance and decision support, and threat detection, location, and protection, including airborne, ground-based and naval radar, electronic warfare, and combat systems, as well as C4I solutions. Additionally, it provides submarines with the Stirling system for air independent propulsion, surface combatants, mine hunting systems, and autonomous vessels; and systems development, systems integration, information security, systems security, communications, mechanics, and technical product information and logistics. Saab AB (publ) was incorporated in 1937 and is headquartered in Stockholm, Sweden.

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.