Head to Head Comparison: Maxwell Technologies (MXWL) & Arotech (ARTX)

Maxwell Technologies (NASDAQ: MXWL) and Arotech (NASDAQ:ARTX) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Maxwell Technologies and Arotech, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Maxwell Technologies 0 1 5 0 2.83
Arotech 0 0 1 0 3.00

Maxwell Technologies currently has a consensus price target of $7.00, suggesting a potential upside of 23.46%. Arotech has a consensus price target of $4.50, suggesting a potential upside of 15.38%. Given Maxwell Technologies’ higher possible upside, equities analysts plainly believe Maxwell Technologies is more favorable than Arotech.

Profitability

This table compares Maxwell Technologies and Arotech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Maxwell Technologies -31.75% -29.38% -16.32%
Arotech 5.02% 7.56% 4.61%

Insider & Institutional Ownership

56.6% of Maxwell Technologies shares are owned by institutional investors. Comparatively, 24.0% of Arotech shares are owned by institutional investors. 7.7% of Maxwell Technologies shares are owned by company insiders. Comparatively, 9.2% of Arotech shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Maxwell Technologies and Arotech’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Maxwell Technologies $130.37 million 1.65 -$43.12 million ($0.91) -6.23
Arotech $98.72 million 1.05 $3.83 million $0.16 24.38

Arotech has lower revenue, but higher earnings than Maxwell Technologies. Maxwell Technologies is trading at a lower price-to-earnings ratio than Arotech, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Maxwell Technologies has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Arotech has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Summary

Arotech beats Maxwell Technologies on 8 of the 13 factors compared between the two stocks.

Maxwell Technologies Company Profile

Maxwell Technologies, Inc. develops, manufactures, and markets energy storage and power delivery products worldwide. The company provides ultracapacitor cells, multi-cell packs, modules, and subsystems that provide energy storage and power delivery solutions for applications in automotive, grid energy storage, wind, bus, industrial, and truck industries; and lithium-ion capacitors, which are energy storage devices designed to address various applications in the rail, grid, and industrial markets. It also offers CONDIS high-voltage capacitors, such as grading and coupling capacitors, electric voltage transformers, and metering products that are used to ensure the safety and reliability of electric utility infrastructure and other applications, including transport, distribution, and measurement of high-voltage electrical energy. In addition, the company provides dry battery electrodes for use in electric vehicles. It markets and sells its products through direct and indirect sales channels to integrators and OEMs for use in a range of end products. The company was formerly known as Maxwell Laboratories, Inc. and changed its name to Maxwell Technologies, Inc. in 1996. Maxwell Technologies, Inc. was founded in 1965 and is headquartered in San Diego, California.

Arotech Company Profile

Arotech Corporation provides defense and security products worldwide. 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. This division offers simulators, systems engineering support, and software products for training vehicle operators to the United States military, government, municipalities, and private industry; weapon simulations used to train military pilots, weapon employment information used in air launched weapons, and part-task simulators to train aircrew; specialized use-of-force training simulators and systems for police, security personnel, and the military under the MILO Range trade name; and consulting and development support services under the Realtime Technologies trade name. Its Power Systems division provides electronics engineering and design, system integration, rapid prototyping, and vertically production services for military, aerospace, and industrial customers, including hybrid power generation systems, smart power subsystems for military vehicles and dismounted applications, and aircraft and missile systems support for weapons and communications technologies. This division also develops and sells rechargeable and primary batteries, and smart chargers to the military and medical markets, and to private defense industry under the Epsilor name. In addition, it develops, manufactures, and markets primary batteries, rechargeable batteries, and battery chargers for the military; and produces water-activated lifejacket lights for commercial aviation and marine applications under the Electric Fuel name. The company was formerly known as Electric Fuel Corporation and changed its name to Arotech Corporation in September 2003. The company was founded in 1990 and is based in Ann Arbor, Michigan.

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