Reviewing American Science & Engineering (ASEI) and DigitalGlobe (DGI)

American Science & Engineering (NASDAQ: ASEI) and DigitalGlobe (NYSE:DGI) are both aerospace & defense – nec companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Dividends

American Science & Engineering pays an annual dividend of $2.00 per share and has a dividend yield of 5.4%. DigitalGlobe does not pay a dividend. American Science & Engineering pays out -540.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for American Science & Engineering and DigitalGlobe, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Science & Engineering 0 0 0 0 N/A
DigitalGlobe 0 3 1 0 2.25

DigitalGlobe has a consensus price target of $35.83, suggesting a potential upside of 4.17%. Given DigitalGlobe’s higher probable upside, analysts clearly believe DigitalGlobe is more favorable than American Science & Engineering.

Profitability

This table compares American Science & Engineering and DigitalGlobe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Science & Engineering 0.19% 0.15% 0.13%
DigitalGlobe 0.64% 2.40% 0.97%

Valuation & Earnings

This table compares American Science & Engineering and DigitalGlobe’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Science & Engineering N/A N/A N/A ($0.37) -100.14
DigitalGlobe $725.40 million 2.95 $26.50 million $0.02 1,720.86

DigitalGlobe has higher revenue and earnings than American Science & Engineering. American Science & Engineering is trading at a lower price-to-earnings ratio than DigitalGlobe, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

72.9% of American Science & Engineering shares are held by institutional investors. Comparatively, 93.9% of DigitalGlobe shares are held by institutional investors. 2.4% of American Science & Engineering shares are held by insiders. Comparatively, 2.3% of DigitalGlobe shares are held 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.

Summary

DigitalGlobe beats American Science & Engineering on 9 of the 12 factors compared between the two stocks.

American Science & Engineering Company Profile

American Science and Engineering, Inc. (AS&E) is engaged in developing, manufacturing, marketing and selling X-ray inspection and other detection products. The Company manufactures X-ray inspection products that can be used to inspect parcels, baggage, vehicles, pallets, cargo containers and people. The Company offers its products for homeland security, force protection, public safety and other critical defense and security applications. The Company’s products and services are grouped into approximately five areas: cargo inspection systems, which include OmniView Gantry System, Z Portal System, Sentry Portal System, CarView System and ASE Connect; mobile cargo inspection systems, which include Z Backscatter Van; parcel and personnel screening inspection systems, which include Gemini System, SmartCheck System and MINI Z System; custom products, and service and support.

DigitalGlobe Company Profile

DigitalGlobe, Inc. is a provider of Earth imagery, data and analysis. The Company’s imagery solutions and other services support a range of uses, including mission-planning, mapping and analysis, environmental monitoring, oil and gas exploration and infrastructure management. The Company’s imagery solutions and other services are sourced from its own satellite constellation and third-party providers. The Company sells its products and services through a combination of direct and indirect channels, consisting of a global network of resellers, strategic partners and direct enterprise sales to its United States Government and Diversified Commercial customer groups. The Company offers products consisting of imagery from its constellation of satellites, and provides geospatial products and services. The Company processes its imagery to varying levels according to its customers’ specifications and delivers its products using the distribution method.

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