Analyzing Applied Energetics (OTCMKTS:AERG) and Microvision (NASDAQ:MVIS)

Microvision (NASDAQ:MVIS) and Applied Energetics (OTCMKTS:AERG) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Profitability

This table compares Microvision and Applied Energetics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Microvision	-2,295.70%	-161.24%	-92.54%
Applied Energetics	-386.66%	-413.63%	-239.35%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Microvision and Applied Energetics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microvision	0	1	2	0	2.67
Applied Energetics	0	0	0	0	0.00

Microvision currently has a consensus price target of $2.50, suggesting a potential upside of 120.26%. Given Microvision’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Microvision is more favorable than Applied Energetics.

Insider and Institutional Ownership

30.9% of Microvision shares are held by institutional investors. Comparatively, 0.5% of Applied Energetics shares are held by institutional investors. 1.0% of Microvision shares are held by company insiders. Comparatively, 17.2% of Applied Energetics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Microvision has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Applied Energetics has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Earnings & Valuation

This table compares Microvision and Applied Energetics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microvision	$4.70 million	60.19	-$96.92 million	($0.44)	-2.58
Applied Energetics	$2.43 million	198.74	-$9.18 million	($0.03)	-73.66

Applied Energetics has lower revenue, but higher earnings than Microvision. Applied Energetics is trading at a lower price-to-earnings ratio than Microvision, indicating that it is currently the more affordable of the two stocks.

Summary

Microvision beats Applied Energetics on 9 of the 14 factors compared between the two stocks.

About Microvision

MicroVision, Inc. develops and sells lidar sensors and software used in automotive safety and autonomous driving applications. It offers a suite of light detection and ranging (lidar) sensors and perception; and validation software for automotive OEMs, advanced driver-assistance systems, and autonomous vehicle applications, as well as non-automotive applications including industrial, robotics, and smart infrastructure. The company also provides MAVIN DR, a dynamic view lidar system, which combines short, medium, and long range sense and field of view into one form; lidar sensors under the MOVIA brand name; and MOSAIK, a software that automates manual data classification or annotation process. In addition, it provides engineering services for its hardware and software products. The company markets its products to customers directly, through trade shows, and its website. MicroVision, Inc. was founded in 1993 and is headquartered in Redmond, Washington.

About Applied Energetics

Applied Energetics, Inc. engages in the provision of advanced optical technologies and ultrashort pulse directed energy solutions utilizing dual-use laser and optical technologies to defense, national security, industrial, biomedical, and scientific customers worldwide. It develops and holds various intellectual property rights such as laser guided energy and laser induced plasma channel technology for used in high-tech directed energy systems. The company was founded in 1990 and is headquartered in Tucson, Arizona.