Leonardo DRS (DRS) Competitors

Vertiv (NYSE:VRT) and Leonardo DRS (NASDAQ:DRS) are both large-cap electronic equipment companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, media sentiment, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Is VRT or DRS more profitable?

Vertiv has a net margin of 7.92% compared to Leonardo DRS's net margin of 7.00%. Vertiv's return on equity of 56.01% beat Leonardo DRS's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Vertiv	7.92%	56.01%	13.30%
Leonardo DRS	7.00%	10.63%	6.67%

Is VRT or DRS a better dividend stock?

Vertiv pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. Leonardo DRS pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. Vertiv pays out 8.7% of its earnings in the form of a dividend. Leonardo DRS pays out 41.4% 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. Vertiv has increased its dividend for 2 consecutive years.

Which has more risk & volatility, VRT or DRS?

Vertiv has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Leonardo DRS has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Does the media prefer VRT or DRS?

In the previous week, Vertiv had 34 more articles in the media than Leonardo DRS. MarketBeat recorded 39 mentions for Vertiv and 5 mentions for Leonardo DRS. Leonardo DRS's average media sentiment score of 1.19 beat Vertiv's score of 1.08 indicating that Leonardo DRS is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Vertiv	20 Very Positive mention(s)	8 Positive mention(s)	7 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
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

Which has better valuation and earnings, VRT or DRS?

Vertiv has higher revenue and earnings than Leonardo DRS. Leonardo DRS is trading at a lower price-to-earnings ratio than Vertiv, 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
Vertiv	$8.41B	5.48	$495.80M	$1.72	70.24
Leonardo DRS	$3.23B	3.80	$213M	$0.87	53.15

Do analysts rate VRT or DRS?

Vertiv currently has a consensus target price of $132.94, suggesting a potential upside of 10.04%. Leonardo DRS has a consensus target price of $44.29, suggesting a potential downside of 4.23%. Given Vertiv's stronger consensus rating and higher possible upside, analysts clearly believe Vertiv is more favorable than Leonardo DRS.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertiv	0 Sell rating(s)	3 Hold rating(s)	15 Buy rating(s)	2 Strong Buy rating(s)	2.95
Leonardo DRS	0 Sell rating(s)	2 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.71

Do institutionals & insiders have more ownership in VRT or DRS?

89.9% of Vertiv shares are owned by institutional investors. Comparatively, 18.8% of Leonardo DRS shares are owned by institutional investors. 2.6% of Vertiv shares are owned by company insiders. Comparatively, 0.3% of Leonardo DRS shares are owned by company 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.

Summary

Vertiv beats Leonardo DRS on 18 of the 20 factors compared between the two stocks.