Analyzing Astronics Corporation (ATRO) & Mercury Systems (MRCY)

Astronics Corporation (NASDAQ: ATRO) and Mercury Systems (NASDAQ:MRCY) are both aerospace companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Volatility & Risk

Astronics Corporation has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Mercury Systems has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Profitability

This table compares Astronics Corporation and Mercury Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Astronics Corporation 5.80% 10.24% 5.76%
Mercury Systems 9.14% 6.51% 5.12%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Astronics Corporation and Mercury Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Astronics Corporation 0 1 2 0 2.67
Mercury Systems 0 2 5 0 2.71

Astronics Corporation currently has a consensus price target of $38.33, indicating a potential upside of 0.30%. Mercury Systems has a consensus price target of $50.20, indicating a potential upside of 2.53%. Given Mercury Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Mercury Systems is more favorable than Astronics Corporation.

Earnings and Valuation

This table compares Astronics Corporation and Mercury Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Astronics Corporation $633.12 million 1.73 $48.42 million $1.18 32.39
Mercury Systems $408.59 million 5.78 $24.87 million $0.86 56.93

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

Institutional & Insider Ownership

64.5% of Astronics Corporation shares are owned by institutional investors. Comparatively, 96.3% of Mercury Systems shares are owned by institutional investors. 16.5% of Astronics Corporation shares are owned by insiders. Comparatively, 3.5% of Mercury Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

About Astronics Corporation

Astronics Corporation is a supplier of products to the aerospace, defense, electronics and semiconductor industries. The Company’s products and services include electrical power generation, distribution and motion systems, lighting and safety systems, avionics products, aircraft structures, systems certification and automated test systems. The Company operates through two segments: Aerospace and Test Systems. The Aerospace segment designs and manufactures products for the global aerospace industry. Its product lines include lighting and safety systems, electrical power generation, distribution and motions systems, aircraft structures, avionics products, systems certification and other products. The Test Systems segment designs, develops, manufactures and maintains automated test systems that support the semiconductor, aerospace, communications and weapons test systems, as well as training and simulation devices for both commercial and military applications.

About Mercury Systems

Mercury Systems, Inc. is a commercial provider of secure processing subsystems designed and made in the United States. The Company’s solutions support a range of defense and intelligence programs. Its technologies include embedded processing modules and subsystems, radio frequency (RF) and microwave multi-function assemblies, as well as subsystems, and RF and microwave components. It designs and builds RF and microwave components and subsystems for the electronic warfare (EW), signals intelligence (SIGINT) and other communications requirements and applications. It offers analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. It designs, markets and sells software and middleware environments for the development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms. It also offers solutions in mission computing, safety-critical avionics and platform management.

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