Rocket Lab (NASDAQ:RKLB) & Elbit Systems (NASDAQ:ESLT) Head to Head Contrast

Elbit Systems (NASDAQ:ESLT) and Rocket Lab (NASDAQ:RKLB) are both large-cap aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Elbit Systems and Rocket Lab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elbit Systems	0	4	2	0	2.33
Rocket Lab	1	5	12	3	2.81

Elbit Systems presently has a consensus price target of $725.25, suggesting a potential downside of 9.71%. Rocket Lab has a consensus price target of $108.24, suggesting a potential upside of 7.74%. Given Rocket Lab’s stronger consensus rating and higher probable upside, analysts clearly believe Rocket Lab is more favorable than Elbit Systems.

Profitability

This table compares Elbit Systems and Rocket Lab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elbit Systems	7.14%	16.15%	5.25%
Rocket Lab	-26.87%	-11.72%	-7.82%

Risk and Volatility

Elbit Systems has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, Rocket Lab has a beta of 2.54, meaning that its share price is 154% more volatile than the S&P 500.

Valuation and Earnings

This table compares Elbit Systems and Rocket Lab”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elbit Systems	$8.23 billion	4.34	$534.34 million	$12.35	65.04
Rocket Lab	$601.80 million	96.61	-$198.21 million	($0.32)	-313.94

Elbit Systems has higher revenue and earnings than Rocket Lab. Rocket Lab is trading at a lower price-to-earnings ratio than Elbit Systems, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

17.9% of Elbit Systems shares are held by institutional investors. Comparatively, 71.8% of Rocket Lab shares are held by institutional investors. 0.8% of Elbit Systems shares are held by insiders. Comparatively, 8.4% of Rocket Lab shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Rocket Lab beats Elbit Systems on 8 of the 15 factors compared between the two stocks.

About Elbit Systems

Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel. The company operates through Aerospace, C4I and Cyber, ISTAR and EW, Land, and Elbit Systems of America segments. It also offers military aircraft and helicopter systems; commercial aviation systems and aerostructures; unmanned aircraft systems; electro-optic, night vision, and countermeasures systems; naval systems; land vehicle systems; munitions, such as precision munitions for land, air, and sea applications; command, control, communications, computer, intelligence, surveillance and reconnaissance, and cyber systems; electronic warfare and signal intelligence systems; and other commercial activities. In addition, the company manufactures and sells data links and radio communication systems and equipment, and cyber intelligence, autonomous, and homeland security solutions. Further, it provides various electronic warfare and signal intelligence systems, and laser systems; armored vehicle and other platforms survivability and protection systems, artillery, and mortar systems, as well as provides various training and support services. Additionally, the company offers products and systems solutions to military, homeland security, medical instrumentation, and commercial aviation clients. It markets its systems and products as a prime contractor or subcontractor to various governments and companies. It also has operations in Israel, North America, Europe, Latin America, the Asia-Pacific, and internationally. The company was incorporated in 1966 and is based in Haifa, Israel.

About Rocket Lab

Rocket Lab USA, Inc., a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets. It also designs, manufactures, and sells Electron, a reusable orbital-class small rocket; and the Photon satellite platforms, as well as developing the Neutron 8-ton payload class launch vehicle; conducts remote launch activities; and designs and manufactures a range of components and subsystems for the Photon family of spacecraft and broader merchant spacecraft components. The company serves commercial, aerospace prime contractors, and government customers. Rocket Lab USA, Inc. was founded in 2006 and is headquartered in Long Beach, California.