Reviewing Arotech (ARTX) and The Competition

Arotech (NASDAQ: ARTX) is one of 25 publicly-traded companies in the “Miscellaneous electrical machinery, equipment, & supplies” industry, but how does it compare to its competitors? We will compare Arotech to related companies based on the strength of its profitability, institutional ownership, risk, analyst recommendations, dividends, valuation and earnings.

Analyst Recommendations

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This is a breakdown of current ratings and target prices for Arotech and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arotech 0 0 1 0 3.00
Arotech Competitors 43 276 453 11 2.55

Arotech currently has a consensus target price of $4.50, indicating a potential upside of 40.63%. As a group, “Miscellaneous electrical machinery, equipment, & supplies” companies have a potential upside of 21.65%. Given Arotech’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Arotech is more favorable than its competitors.

Risk & Volatility

Arotech has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Arotech’s competitors have a beta of 0.76, meaning that their average stock price is 24% less volatile than the S&P 500.

Institutional and Insider Ownership

22.3% of Arotech shares are held by institutional investors. Comparatively, 44.4% of shares of all “Miscellaneous electrical machinery, equipment, & supplies” companies are held by institutional investors. 9.2% of Arotech shares are held by insiders. Comparatively, 17.3% of shares of all “Miscellaneous electrical machinery, equipment, & supplies” companies 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.

Profitability

This table compares Arotech and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arotech 3.88% 5.98% 3.61%
Arotech Competitors -0.27% -139.09% 17.93%

Earnings and Valuation

This table compares Arotech and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Arotech $98.72 million $3.83 million 20.00
Arotech Competitors $793.44 million $37.39 million 5.56

Arotech’s competitors have higher revenue and earnings than Arotech. Arotech is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Arotech beats its competitors on 7 of the 13 factors compared.

About Arotech

Arotech Corporation is a defense and security products and services company, engaged in providing interactive simulation for military, law enforcement and commercial markets, and batteries and charging systems for the military, commercial and medical markets. The Company operates through two segments: Training and Simulation Division, and Power Systems Division. The Company’s Training and Simulation Division develops, manufactures and markets multimedia and interactive digital solutions for engineering, use-of-force training and operator training of military, law enforcement, security, emergency services and other personnel. The Company’s Power Systems Division provides battery solutions, energy management and power distribution technologies and product design and manufacturing services for the aerospace, defense, law enforcement, homeland security markets, and it manufactures and sells rechargeable batteries for defense and security products and medical and industrial applications.

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