Mercury Systems (MRCY) versus The Competition Critical Comparison

Mercury Systems (NASDAQ: MRCY) is one of 45 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its rivals? We will compare Mercury Systems to similar businesses based on the strength of its analyst recommendations, valuation, risk, earnings, institutional ownership, dividends and profitability.

Risk & Volatility

Mercury Systems has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, Mercury Systems’ rivals have a beta of 1.07, meaning that their average stock price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares Mercury Systems and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Mercury Systems $408.59 million $24.87 million 57.13
Mercury Systems Competitors $9.00 billion $807.78 million 173.64

Mercury Systems’ rivals have higher revenue and earnings than Mercury Systems. Mercury Systems is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Mercury Systems and its rivals’ 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%
Mercury Systems Competitors -6.14% 22.56% 3.57%

Analyst Ratings

This is a breakdown of recent ratings for Mercury Systems and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mercury Systems 0 2 5 0 2.71
Mercury Systems Competitors 477 2112 2356 84 2.41

Mercury Systems presently has a consensus price target of $50.20, suggesting a potential upside of 2.18%. As a group, “Aerospace & Defense” companies have a potential upside of 6.89%. Given Mercury Systems’ rivals higher probable upside, analysts clearly believe Mercury Systems has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

96.3% of Mercury Systems shares are owned by institutional investors. Comparatively, 69.9% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 3.5% of Mercury Systems shares are owned by insiders. Comparatively, 7.1% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Mercury Systems rivals beat Mercury Systems on 8 of the 13 factors compared.

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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