Seek Returns logo

AXON vs. TXT: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AXON and TXT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AXON’s market capitalization of 61.93 billion USD is substantially larger than TXT’s 14.85 billion USD, indicating a significant difference in their market valuations.

With betas of 1.28 for AXON and 1.16 for TXT, both stocks show similar sensitivity to overall market movements.

SymbolAXONTXT
Company NameAxon Enterprise, Inc.Textron Inc.
CountryUSUS
SectorIndustrialsIndustrials
IndustryAerospace & DefenseAerospace & Defense
CEOPatrick W. SmithScott C. Donnelly
Price795.48 USD82.23 USD
Market Cap61.93 billion USD14.85 billion USD
Beta1.281.16
ExchangeNASDAQNYSE
IPO DateJune 19, 2001December 22, 1947
ADRNoNo

Historical Performance

This chart compares the performance of AXON and TXT by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AXON vs. TXT: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AXON

14.86%

Aerospace & Defense Industry

Max
42.57%
Q3
16.67%
Median
8.39%
Q1
-0.77%
Min
-23.36%

AXON’s Return on Equity of 14.86% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

TXT

11.74%

Aerospace & Defense Industry

Max
42.57%
Q3
16.67%
Median
8.39%
Q1
-0.77%
Min
-23.36%

TXT’s Return on Equity of 11.74% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

AXON vs. TXT: A comparison of their ROE against the Aerospace & Defense industry benchmark.

Return on Invested Capital

AXON

0.68%

Aerospace & Defense Industry

Max
23.42%
Q3
8.86%
Median
5.47%
Q1
-5.60%
Min
-22.46%

AXON’s Return on Invested Capital of 0.68% is in line with the norm for the Aerospace & Defense industry, reflecting a standard level of efficiency in generating profits from its capital base.

TXT

6.50%

Aerospace & Defense Industry

Max
23.42%
Q3
8.86%
Median
5.47%
Q1
-5.60%
Min
-22.46%

TXT’s Return on Invested Capital of 6.50% is in line with the norm for the Aerospace & Defense industry, reflecting a standard level of efficiency in generating profits from its capital base.

AXON vs. TXT: A comparison of their ROIC against the Aerospace & Defense industry benchmark.

Net Profit Margin

AXON

14.86%

Aerospace & Defense Industry

Max
22.67%
Q3
8.04%
Median
4.95%
Q1
-5.07%
Min
-16.58%

A Net Profit Margin of 14.86% places AXON in the upper quartile for the Aerospace & Defense industry, signifying strong profitability and more effective cost management than most of its peers.

TXT

5.98%

Aerospace & Defense Industry

Max
22.67%
Q3
8.04%
Median
4.95%
Q1
-5.07%
Min
-16.58%

TXT’s Net Profit Margin of 5.98% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.

AXON vs. TXT: A comparison of their Net Profit Margin against the Aerospace & Defense industry benchmark.

Operating Profit Margin

AXON

1.50%

Aerospace & Defense Industry

Max
22.01%
Q3
11.49%
Median
8.96%
Q1
3.77%
Min
-4.96%

AXON’s Operating Profit Margin of 1.50% is in the lower quartile for the Aerospace & Defense industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

TXT

6.57%

Aerospace & Defense Industry

Max
22.01%
Q3
11.49%
Median
8.96%
Q1
3.77%
Min
-4.96%

TXT’s Operating Profit Margin of 6.57% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.

AXON vs. TXT: A comparison of their Operating Margin against the Aerospace & Defense industry benchmark.

Profitability at a Glance

SymbolAXONTXT
Return on Equity (TTM)14.86%11.74%
Return on Assets (TTM)5.44%4.90%
Return on Invested Capital (TTM)0.68%6.50%
Net Profit Margin (TTM)14.86%5.98%
Operating Profit Margin (TTM)1.50%6.57%
Gross Profit Margin (TTM)60.44%18.85%

Financial Strength

Current Ratio

AXON

2.83

Aerospace & Defense Industry

Max
5.13
Q3
3.36
Median
2.16
Q1
1.20
Min
0.41

AXON’s Current Ratio of 2.83 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

TXT

1.66

Aerospace & Defense Industry

Max
5.13
Q3
3.36
Median
2.16
Q1
1.20
Min
0.41

TXT’s Current Ratio of 1.66 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

AXON vs. TXT: A comparison of their Current Ratio against the Aerospace & Defense industry benchmark.

Debt-to-Equity Ratio

AXON

0.80

Aerospace & Defense Industry

Max
1.20
Q3
0.73
Median
0.51
Q1
0.09
Min
0.00

AXON’s leverage is in the upper quartile of the Aerospace & Defense industry, with a Debt-to-Equity Ratio of 0.80. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

TXT

0.51

Aerospace & Defense Industry

Max
1.20
Q3
0.73
Median
0.51
Q1
0.09
Min
0.00

TXT’s Debt-to-Equity Ratio of 0.51 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AXON vs. TXT: A comparison of their D/E Ratio against the Aerospace & Defense industry benchmark.

Interest Coverage Ratio

AXON

2.53

Aerospace & Defense Industry

Max
12.62
Q3
7.38
Median
2.95
Q1
1.68
Min
-6.68

AXON’s Interest Coverage Ratio of 2.53 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

TXT

9.02

Aerospace & Defense Industry

Max
12.62
Q3
7.38
Median
2.95
Q1
1.68
Min
-6.68

TXT’s Interest Coverage Ratio of 9.02 is in the upper quartile for the Aerospace & Defense industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AXON vs. TXT: A comparison of their Interest Coverage against the Aerospace & Defense industry benchmark.

Financial Strength at a Glance

SymbolAXONTXT
Current Ratio (TTM)2.831.66
Quick Ratio (TTM)2.620.69
Debt-to-Equity Ratio (TTM)0.800.51
Debt-to-Asset Ratio (TTM)0.340.22
Net Debt-to-EBITDA Ratio (TTM)4.161.72
Interest Coverage Ratio (TTM)2.539.02

Growth

The following charts compare key year-over-year (YoY) growth metrics for AXON and TXT. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AXON vs. TXT: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AXON vs. TXT: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AXON vs. TXT: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AXON

0.00%

Aerospace & Defense Industry

Max
6.00%
Q3
0.66%
Median
0.00%
Q1
0.00%
Min
0.00%

AXON currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

TXT

0.10%

Aerospace & Defense Industry

Max
6.00%
Q3
0.66%
Median
0.00%
Q1
0.00%
Min
0.00%

TXT’s Dividend Yield of 0.10% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

AXON vs. TXT: A comparison of their Dividend Yield against the Aerospace & Defense industry benchmark.

Dividend Payout Ratio

AXON

0.00%

Aerospace & Defense Industry

Max
172.02%
Q3
32.47%
Median
0.00%
Q1
0.00%
Min
0.00%

AXON has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

TXT

1.33%

Aerospace & Defense Industry

Max
172.02%
Q3
32.47%
Median
0.00%
Q1
0.00%
Min
0.00%

TXT’s Dividend Payout Ratio of 1.33% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AXON vs. TXT: A comparison of their Payout Ratio against the Aerospace & Defense industry benchmark.

Dividend at a Glance

SymbolAXONTXT
Dividend Yield (TTM)0.00%0.10%
Dividend Payout Ratio (TTM)0.00%1.33%

Valuation

Price-to-Earnings Ratio

AXON

184.79

Aerospace & Defense Industry

Max
75.34
Q3
54.40
Median
38.63
Q1
26.10
Min
16.44

At 184.79, AXON’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

TXT

18.07

Aerospace & Defense Industry

Max
75.34
Q3
54.40
Median
38.63
Q1
26.10
Min
16.44

In the lower quartile for the Aerospace & Defense industry, TXT’s P/E Ratio of 18.07 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AXON vs. TXT: A comparison of their P/E Ratio against the Aerospace & Defense industry benchmark.

Forward P/E to Growth Ratio

AXON

8.54

Aerospace & Defense Industry

Max
10.68
Q3
5.36
Median
2.31
Q1
1.47
Min
0.01

A Forward PEG Ratio of 8.54 places AXON in the upper quartile for the Aerospace & Defense industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

TXT

1.70

Aerospace & Defense Industry

Max
10.68
Q3
5.36
Median
2.31
Q1
1.47
Min
0.01

TXT’s Forward PEG Ratio of 1.70 is within the middle range of its peers in the Aerospace & Defense industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

AXON vs. TXT: A comparison of their Forward PEG Ratio against the Aerospace & Defense industry benchmark.

Price-to-Sales Ratio

AXON

27.81

Aerospace & Defense Industry

Max
19.34
Q3
9.54
Median
2.71
Q1
1.59
Min
0.35

With a P/S Ratio of 27.81, AXON trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

TXT

1.07

Aerospace & Defense Industry

Max
19.34
Q3
9.54
Median
2.71
Q1
1.59
Min
0.35

In the lower quartile for the Aerospace & Defense industry, TXT’s P/S Ratio of 1.07 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

AXON vs. TXT: A comparison of their P/S Ratio against the Aerospace & Defense industry benchmark.

Price-to-Book Ratio

AXON

23.93

Aerospace & Defense Industry

Max
16.08
Q3
8.12
Median
4.12
Q1
2.69
Min
0.69

At 23.93, AXON’s P/B Ratio is at an extreme premium to the Aerospace & Defense industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

TXT

2.06

Aerospace & Defense Industry

Max
16.08
Q3
8.12
Median
4.12
Q1
2.69
Min
0.69

TXT’s P/B Ratio of 2.06 is in the lower quartile for the Aerospace & Defense industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

AXON vs. TXT: A comparison of their P/B Ratio against the Aerospace & Defense industry benchmark.

Valuation at a Glance

SymbolAXONTXT
Price-to-Earnings Ratio (P/E, TTM)184.7918.07
Forward PEG Ratio (TTM)8.541.70
Price-to-Sales Ratio (P/S, TTM)27.811.07
Price-to-Book Ratio (P/B, TTM)23.932.06
Price-to-Free Cash Flow Ratio (P/FCF, TTM)170.8027.24
EV-to-EBITDA (TTM)274.0611.98
EV-to-Sales (TTM)28.231.25