Financial Review: EnSync (NASDAQ:ESNC) and Arotech Corporation (ARTX)

Arotech Corporation (NASDAQ: ARTX) and EnSync (NASDAQ:ESNC) are both small-cap aerospace companies, but which is the better business? We will compare the two companies based on the strength of their profitabiliy, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Valuation and Earnings

This table compares Arotech Corporation and EnSync’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Arotech Corporation	$89.92 million	1.12	$5.36 million	($0.12)	-32.08
EnSync	$10.73 million	1.74	-$18.15 million	N/A	N/A

Arotech Corporation has higher revenue and earnings than EnSync.

Analyst Ratings

This is a summary of current ratings and recommmendations for Arotech Corporation and EnSync, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arotech Corporation	0	0	2	0	3.00
EnSync	0	0	2	0	3.00

Arotech Corporation currently has a consensus target price of $4.75, suggesting a potential upside of 23.38%. EnSync has a consensus target price of $1.75, suggesting a potential upside of 348.83%. Given EnSync’s higher probable upside, analysts plainly believe EnSync is more favorable than Arotech Corporation.

Insider & Institutional Ownership

21.8% of Arotech Corporation shares are owned by institutional investors. 9.2% of Arotech Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Arotech Corporation and EnSync’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arotech Corporation	-3.31%	1.59%	0.94%
EnSync	-9,073.13%	-264.98%	-73.94%

Summary

Arotech Corporation beats EnSync on 7 of the 9 factors compared between the two stocks.

Arotech Corporation Company Profile

Arotech Corporation is a defense and security products and services company, engaged in providing interactive simulation for military, law enforcement and commercial markets, and batteries and charging systems for the military, commercial and medical markets. The Company operates through two segments: Training and Simulation Division, and Power Systems Division. 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. The Company’s Power Systems Division provides battery solutions, energy management and power distribution technologies and product design and manufacturing services for the aerospace, defense, law enforcement, homeland security markets, and it manufactures and sells rechargeable batteries for defense and security products and medical and industrial applications.

EnSync Company Profile

EnSync, Inc. is engaged in developing, licensing and manufacturing energy management systems solutions serving the commercial and industrial (C&I) building, utility, and off-grid markets. The Company develops and commercializes product and service solutions for the distributed energy generation market, including energy management systems, energy storage systems, applications, and Internet of energy platforms that link distributed energy resources with the grid network. The Company’s products include Matrix energy management system and advanced energy storage products. The Matrix Energy Management System is a behind the meter energy control system, which focuses at the commercial, industrial and multi-tenant building markets. Matrix Energy Management System offers swappable drawers that can be replaced without taking the entire distributed generation system off line. The Company’s Agile Hybrid Storage System is a technology that combines a range of storage units.