Financial Analysis: Actelis Networks (NASDAQ:ASNS) vs. ESCO Technologies (NYSE:ESE)

ESCO Technologies (NYSE:ESE) and Actelis Networks (NASDAQ:ASNS) are both industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Institutional & Insider Ownership

95.7% of ESCO Technologies shares are owned by institutional investors. Comparatively, 12.4% of Actelis Networks shares are owned by institutional investors. 0.8% of ESCO Technologies shares are owned by insiders. Comparatively, 5.5% of Actelis Networks shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

ESCO Technologies has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Actelis Networks has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for ESCO Technologies and Actelis Networks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ESCO Technologies	0	1	2	0	2.67
Actelis Networks	0	0	0	0	0.00

ESCO Technologies presently has a consensus target price of $147.50, indicating a potential downside of 0.97%. Given ESCO Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe ESCO Technologies is more favorable than Actelis Networks.

Profitability

This table compares ESCO Technologies and Actelis Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ESCO Technologies	9.92%	9.09%	6.00%
Actelis Networks	-56.82%	-752.62%	-45.14%

Earnings and Valuation

This table compares ESCO Technologies and Actelis Networks”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ESCO Technologies	$1.03 billion	3.74	$101.88 million	$3.94	37.80
Actelis Networks	$7.72 million	0.98	-$6.29 million	($1.25)	-0.97

ESCO Technologies has higher revenue and earnings than Actelis Networks. Actelis Networks is trading at a lower price-to-earnings ratio than ESCO Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

ESCO Technologies beats Actelis Networks on 12 of the 14 factors compared between the two stocks.

About ESCO Technologies

ESCO Technologies Inc. produces and supplies engineered products and systems for industrial and commercial markets worldwide. It operates through three segments: Aerospace & Defense, Utility Solutions Group, and RF Test & Measurement. The Aerospace & Defense segment designs and manufactures filtration products, including hydraulic filter elements and fluid control devices used in commercial aerospace applications; filter mechanisms used in micro-propulsion devices for satellites; and custom designed filters for manned aircraft and submarines. It also designs, develops, and manufactures elastomeric-based signature reduction solutions for U.S. naval vessels; and mission-critical bushings, pins, sleeves, and precision-tolerance machined components for landing gear, rotor heads, engine mounts, flight controls, and actuation systems for the aerospace and defense industries. The Utility Solutions Group segment provides diagnostic testing solutions that enable electric power grid operators to assess the integrity of high-voltage power delivery equipment; and decision support tools for the renewable energy industry, primarily wind and solar. The RF Test & Measurement segment designs and manufactures RF test and secure communication facilities, acoustic test enclosures, RF and magnetically shielded rooms, RF measurement systems, and broadcast and recording studios; and RF absorptive materials, filters, antennas, field probes, test cells, proprietary measurement software, and other test accessories to perform various tests. The company distributes its products through a network of distributors, sales representatives, direct sales teams, and in-house sales personnel. The company was incorporated in 1990 and is based in Saint Louis, Missouri.

About Actelis Networks

Actelis Networks, Inc. engages in the design, development, manufacture, and marketing of cyber hardened, hybrid fiber, networking solutions for Internet of Things and telecommunication companies in North America, Europe, the Middle East, Israel, and the Asia Pacific. It provides rapid-deployment networking solutions for wide-area IoT applications, including federal, state, and local governments; intelligent traffic systems; and military, utility, rail, telecom, and campus applications. The company’s products include ethernet access devices; network aggregator switches; and Advanced MetaLIGHT/ Gigaline element management systems software, which enables remote management, monitoring, maintenance, and configuration of the installed equipment in the network. It also offers dynamic spectral software; and access broadband equipment. It serves offers its products through system integrators, distributors, contractors, resellers, and consultants. The company was incorporated in 1998 and is headquartered in Fremont, California.