Analyzing Axon Enterprise (AAXN) & Lockheed Martin (LMT)

Axon Enterprise (NASDAQ: AAXN) and Lockheed Martin (NYSE:LMT) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Axon Enterprise and Lockheed Martin, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axon Enterprise 0 3 3 0 2.50
Lockheed Martin 0 4 8 0 2.67

Axon Enterprise currently has a consensus price target of $30.00, indicating a potential upside of 8.85%. Lockheed Martin has a consensus price target of $322.83, indicating a potential downside of 3.99%. Given Axon Enterprise’s higher possible upside, equities analysts plainly believe Axon Enterprise is more favorable than Lockheed Martin.

Volatility and Risk

Axon Enterprise has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Lockheed Martin has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Valuation and Earnings

This table compares Axon Enterprise and Lockheed Martin’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axon Enterprise $268.24 million 5.44 $17.29 million $0.25 110.24
Lockheed Martin $47.25 billion 2.04 $5.30 billion $12.33 27.27

Lockheed Martin has higher revenue and earnings than Axon Enterprise. Lockheed Martin is trading at a lower price-to-earnings ratio than Axon Enterprise, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Axon Enterprise and Lockheed Martin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axon Enterprise 4.32% 7.91% 4.13%
Lockheed Martin 7.31% 221.41% 7.65%

Dividends

Lockheed Martin pays an annual dividend of $8.00 per share and has a dividend yield of 2.4%. Axon Enterprise does not pay a dividend. Lockheed Martin pays out 64.9% of its earnings in the form of a dividend. Axon Enterprise has increased its dividend for 15 consecutive years.

Institutional and Insider Ownership

95.7% of Axon Enterprise shares are held by institutional investors. Comparatively, 78.8% of Lockheed Martin shares are held by institutional investors. 3.9% of Axon Enterprise shares are held by insiders. Comparatively, 0.4% of Lockheed Martin shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Lockheed Martin beats Axon Enterprise on 9 of the 17 factors compared between the two stocks.

Axon Enterprise Company Profile

Axon Enterprise, Inc., formerly TASER International, Inc., is engaged in development, manufacture and sale of conducted electrical weapons (CEWs) for use by law enforcement, military, corrections and private security personnel, and by private individuals for personal defense. It is also engaged in development of connected wearable on-officer cameras. It operates through two segments: the sale of CEWs, accessories, and other related products and services (the TASER Weapons segment), and the Axon business, focused on devices, wearables, applications, cloud and mobile products (the Axon segment). Its TASER Weapons product line includes TASER X26P, TASER X2, TASER C2, TASER Pulse and Replacement Cartridges. Its hardware products include Axon Body 2, Axon Flex, Axon Fleet, Axon Interview, Axon Signal and Axon Dock. Its Axon software and mobile technologies include Evidence.com, Evidence.com for Prosecutors, Evidence Sync, Axon Capture, Axon View, Axon Five, Axon Convert and Axon Detect.

Lockheed Martin Company Profile

Lockheed Martin Corporation is a security and aerospace company. The Company operates through four segments. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Missiles and Fire Control segment provides air and missile defense systems; fire control systems; manned and unmanned ground vehicles, and energy management solutions. Rotary and Mission Systems segment provides design, manufacture, service and support for a range of military and civil helicopters; mission systems and sensors for rotary and fixed-wing aircraft; simulation and training services, and unmanned systems and technologies, among others. Space Systems segment is engaged in the research and development, design, engineering and production of satellites, strategic and defensive missile systems and space transportation systems.

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