DEFSEC Technologies (DFSC) and Its Peers Critical Review

DEFSEC Technologies (NASDAQ:DFSC) is one of 230 publicly-traded companies in the “Aerospace & Defense” industry, but how does it contrast to its peers? We will compare DEFSEC Technologies to related companies based on the strength of its analyst recommendations, institutional ownership, dividends, valuation, earnings, profitability and risk.

Valuation and Earnings

This table compares DEFSEC Technologies and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DEFSEC Technologies	$7.52 million	-$6.88 million	-0.31
DEFSEC Technologies Competitors	$8.41 billion	$573.01 million	26.95

DEFSEC Technologies’ peers have higher revenue and earnings than DEFSEC Technologies. DEFSEC Technologies is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and recommmendations for DEFSEC Technologies and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DEFSEC Technologies	1	0	0	0	1.00
DEFSEC Technologies Competitors	2076	8039	12367	541	2.49

As a group, “Aerospace & Defense” companies have a potential upside of 30.16%. Given DEFSEC Technologies’ peers stronger consensus rating and higher probable upside, analysts clearly believe DEFSEC Technologies has less favorable growth aspects than its peers.

Insider and Institutional Ownership

21.4% of DEFSEC Technologies shares are owned by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 12.1% of shares of all “Aerospace & Defense” companies are owned by company insiders. 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.

Volatility and Risk

DEFSEC Technologies has a beta of 2.79, meaning that its stock price is 179% more volatile than the S&P 500. Comparatively, DEFSEC Technologies’ peers have a beta of 1.28, meaning that their average stock price is 28% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DEFSEC Technologies	-120.97%	-144.66%	-82.13%
DEFSEC Technologies Competitors	-305.55%	-31.46%	-4.73%

Summary

DEFSEC Technologies peers beat DEFSEC Technologies on 11 of the 13 factors compared.

DEFSEC Technologies Company Profile

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.