Leonardo DRS (DRS) Competitors

Leonardo DRS (NASDAQ:DRS) and L3Harris Technologies (NYSE:LHX) are both large-cap aerospace companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, community ranking, analyst recommendations, media sentiment, profitability, earnings, dividends and risk.

Is DRS or LHX a better dividend stock?

Leonardo DRS pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. L3Harris Technologies pays an annual dividend of $4.80 per share and has a dividend yield of 1.9%. Leonardo DRS pays out 41.4% of its earnings in the form of a dividend. L3Harris Technologies pays out 56.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. L3Harris Technologies has increased its dividend for 24 consecutive years. L3Harris Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do analysts prefer DRS or LHX?

Leonardo DRS presently has a consensus target price of $41.00, indicating a potential downside of 8.15%. L3Harris Technologies has a consensus target price of $258.75, indicating a potential upside of 4.85%. Given L3Harris Technologies' stronger consensus rating and higher probable upside, analysts clearly believe L3Harris Technologies is more favorable than Leonardo DRS.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leonardo DRS	0 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.67
L3Harris Technologies	0 Sell rating(s)	5 Hold rating(s)	12 Buy rating(s)	0 Strong Buy rating(s)	2.71

Which has more risk & volatility, DRS or LHX?

Leonardo DRS has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, L3Harris Technologies has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Does the MarketBeat Community prefer DRS or LHX?

L3Harris Technologies received 159 more outperform votes than Leonardo DRS when rated by MarketBeat users. However, 72.41% of users gave Leonardo DRS an outperform vote while only 64.52% of users gave L3Harris Technologies an outperform vote.

Company	Underperform	Outperform
Leonardo DRS	Outperform Votes 21 72.41%	Underperform Votes 8 27.59%
L3Harris Technologies	Outperform Votes 180 64.52%	Underperform Votes 99 35.48%

Do insiders & institutionals hold more shares of DRS or LHX?

18.8% of Leonardo DRS shares are held by institutional investors. Comparatively, 84.8% of L3Harris Technologies shares are held by institutional investors. 0.3% of Leonardo DRS shares are held by insiders. Comparatively, 0.7% of L3Harris Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Does the media favor DRS or LHX?

In the previous week, L3Harris Technologies had 21 more articles in the media than Leonardo DRS. MarketBeat recorded 26 mentions for L3Harris Technologies and 5 mentions for Leonardo DRS. L3Harris Technologies' average media sentiment score of 1.18 beat Leonardo DRS's score of 0.90 indicating that L3Harris Technologies is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Leonardo DRS	2 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
L3Harris Technologies	17 Very Positive mention(s)	3 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is DRS or LHX more profitable?

L3Harris Technologies has a net margin of 7.04% compared to Leonardo DRS's net margin of 6.59%. L3Harris Technologies' return on equity of 13.11% beat Leonardo DRS's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Leonardo DRS	6.59%	10.37%	6.54%
L3Harris Technologies	7.04%	13.11%	5.98%

Which has higher earnings and valuation, DRS or LHX?

L3Harris Technologies has higher revenue and earnings than Leonardo DRS. L3Harris Technologies is trading at a lower price-to-earnings ratio than Leonardo DRS, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leonardo DRS	$3.35B	3.55	$168M	$0.87	51.31
L3Harris Technologies	$21.25B	2.17	$1.50B	$8.43	29.27

Summary

L3Harris Technologies beats Leonardo DRS on 16 of the 21 factors compared between the two stocks.