Head to Head Contrast: Mercury Systems (MRCY) vs. Astronics Corporation (ATRO)

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

Institutional and Insider Ownership

95.5% of Mercury Systems shares are owned by institutional investors. Comparatively, 64.5% of Astronics Corporation shares are owned by institutional investors. 3.5% of Mercury Systems shares are owned by insiders. Comparatively, 16.5% of Astronics Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Mercury Systems 9.14% 6.51% 5.12%
Astronics Corporation 5.80% 10.29% 5.69%

Analyst Recommendations

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

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

Mercury Systems currently has a consensus target price of $50.20, suggesting a potential downside of 0.95%. Astronics Corporation has a consensus target price of $38.33, suggesting a potential downside of 0.28%. Given Astronics Corporation’s higher possible upside, analysts clearly believe Astronics Corporation is more favorable than Mercury Systems.

Volatility & Risk

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Mercury Systems $408.59 million 5.98 $24.87 million $0.86 58.93
Astronics Corporation $633.12 million 1.70 $48.42 million $1.18 32.58

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.

Summary

Astronics Corporation beats Mercury Systems on 8 of the 14 factors compared between the two stocks.

Mercury Systems Company Profile

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.

Astronics Corporation Company Profile

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.

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