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DRS vs ESLT
Which Stock Would AI Choose? Leonardo DRS (DRS) vs. Elbit Systems (ESLT) Stock Comparison
Key Takeaways
- Both DRS and ESLT operate in the defense sector, focusing on advanced electronics and systems, but ESLT boasts a larger market capitalization of approximately $38 billion compared to DRS's $10.6 billion.
- DRS has shown revenue growth of 12.8% for fiscal 2025, driven by demand in defense electronics, while ESLT reported strong quarterly revenues amid elevated geopolitical demand.
- Recent market activity indicates DRS experienced a pullback over the past month, down around 12%, contrasting with ESLT's resilient performance and year-to-date gains exceeding 70% earlier in the year.
- ESLT trades at a higher trailing P/E ratio (price-to-earnings ratio) of about 73 versus DRS's 44, reflecting greater growth expectations but potential valuation risks.
- Investor sentiment favors defense stocks amid global tensions, positioning both for relative outperformance, though DRS offers U.S.-centric stability while ESLT benefits from international exposure.
Introduction
Leonardo DRS (DRS) and Elbit Systems (ESLT) represent key players in the defense technology sector, specializing in electronic systems and military solutions. This stock comparison evaluates their recent performance, financial metrics, and market positioning amid heightened global defense spending. Traders seeking momentum plays may eye volatility and catalysts, while long-term investors could assess growth drivers and risk profiles. With both stocks sensitive to geopolitical events and government contracts, understanding their relative strengths aids in portfolio allocation and sector rotation strategies in today's uncertain market environment.
DRS Overview and Recent Performance
Leonardo DRS, Inc. (DRS) designs and manufactures defense products, including advanced sensing, network computing, and propulsion systems primarily for U.S. military platforms like naval vessels and aircraft. The company benefits from steady demand in electronic warfare and C4I (command, control, communications, computers, and intelligence) technologies. In recent market activity, DRS shares have faced downward pressure, declining approximately 12% over the past month amid broader sector rotations, though year-to-date gains stand at around 18%. Sentiment has been influenced by solid fiscal 2025 revenue growth of 12.8% to $3.65 billion, fueled by an 8% quarterly increase in Q4, alongside upcoming earnings that could highlight contract backlogs. However, valuation concerns at a trailing P/E of 44 have tempered enthusiasm during recent pullbacks.
ESLT Overview and Recent Performance
Elbit Systems Ltd. (ESLT) is an Israel-based provider of defense electronics, unmanned systems, and electro-optics for land, air, and sea applications, serving global militaries with products like night-vision and C4I solutions. Its diversified portfolio spans commercial aviation and medical devices. Over recent weeks, ESLT has maintained upward momentum, supported by strong demand amid regional conflicts, with shares trading near $834 and year-to-date advances noted above 70% earlier this year. Key drivers include robust Q4 2025 revenues of $2.19 billion and ongoing R&D investments, though elevated trailing P/E around 73 signals premium pricing reflective of growth prospects. Geopolitical tensions have bolstered sentiment, offsetting broader market fluctuations.
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Head-to-Head Comparison
In business models, DRS emphasizes U.S. government contracts with a focus on naval and sensor technologies, offering stability through long-term backlogs but limited international diversification. Conversely, ESLT provides broader global exposure, including unmanned systems and exports, driving higher growth potential amid rising defense budgets worldwide. Recent momentum favors ESLT with superior year-to-date returns, while DRS exhibits more stability despite recent dips. Risk factors differ: DRS faces U.S. budget dependencies, whereas ESLT contends with geopolitical sensitivities in Israel. Both share sector tailwinds from elevated M&O (maintenance and operations) spending, but ESLT's larger scale and catalysts like R&D yield edge in growth drivers, trading at a premium P/E that underscores market sentiment contrasts.
Tickeron AI Verdict
Tickeron’s AI models currently lean toward ESLT with higher probability for near-term outperformance, based on consistent trend strength, robust revenue momentum, and favorable relative positioning in the defense sector. DRS remains attractive for stability seekers, but ESLT's catalysts and sector exposure suggest greater upside potential under prevailing conditions.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is DRS is a Hold and ESLT is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
DRS’s FA Score shows that 0 FA rating(s) are green whileESLT’s FA Score has 2 green FA rating(s).
- DRS’s FA Score: 0 green, 5 red.
- ESLT’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
DRS’s TA Score shows that 4 TA indicator(s) are bullish while ESLT’s TA Score has 3 bullish TA indicator(s).
- DRS’s TA Score: 4 bullish, 6 bearish.
- ESLT’s TA Score: 3 bullish, 5 bearish.
Price Growth
DRS (@Aerospace & Defense) experienced а +3.40% price change this week, while ESLT (@Aerospace & Defense) price change was -1.98% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was -1.30%. For the same industry, the average monthly price growth was -2.79%, and the average quarterly price growth was +43.73%.
Reported Earning Dates
DRS is expected to report earnings on Jul 29, 2026.
ESLT is expected to report earnings on May 26, 2026.
Industries' Descriptions
@Aerospace & Defense (-1.30% weekly)Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.
| DRS | ESLT | DRS / ESLT | |
| Capitalization | 11.4B | 36.3B | 31% |
| EBITDA | 456M | 805M | 57% |
| Gain YTD | 25.936 | 35.029 | 74% |
| P/E Ratio | 40.05 | 68.41 | 59% |
| Revenue | 3.7B | 7.94B | 47% |
| Total Cash | 328M | N/A | - |
| Total Debt | 271M | 965M | 28% |
ESLT | ||
|---|---|---|
OUTLOOK RATING 1..100 | 58 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 88 Overvalued | |
PROFIT vs RISK RATING 1..100 | 14 | |
SMR RATING 1..100 | 58 | |
PRICE GROWTH RATING 1..100 | 41 | |
P/E GROWTH RATING 1..100 | 25 | |
SEASONALITY SCORE 1..100 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
| DRS | ESLT | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 78% | N/A |
| Stochastic ODDS (%) | 2 days ago 61% | 2 days ago 75% |
| Momentum ODDS (%) | 2 days ago 88% | 2 days ago 49% |
| MACD ODDS (%) | 2 days ago 85% | N/A |
| TrendWeek ODDS (%) | 2 days ago 80% | 2 days ago 46% |
| TrendMonth ODDS (%) | 2 days ago 53% | 2 days ago 43% |
| Advances ODDS (%) | 4 days ago 79% | 4 days ago 66% |
| Declines ODDS (%) | 8 days ago 52% | 2 days ago 43% |
| BollingerBands ODDS (%) | 2 days ago 69% | 2 days ago 73% |
| Aroon ODDS (%) | 2 days ago 52% | 2 days ago 47% |
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DRS and
Correlation & Price change
A.I.dvisor indicates that over the last year, DRS has been loosely correlated with KTOS. These tickers have moved in lockstep 57% of the time. This A.I.-generated data suggests there is some statistical probability that if DRS jumps, then KTOS could also see price increases.
| Ticker / NAME | Correlation To DRS | 1D Price Change % | ||
|---|---|---|---|---|
| DRS | 100% | +0.82% | ||
| KTOS - DRS | 57% Loosely correlated | +4.50% | ||
| LHX - DRS | 50% Loosely correlated | +0.88% | ||
| MRCY - DRS | 50% Loosely correlated | +2.25% | ||
| KRMN - DRS | 49% Loosely correlated | -1.87% | ||
| CW - DRS | 48% Loosely correlated | -0.02% | ||
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ESLT and
Correlation & Price change
A.I.dvisor indicates that over the last year, ESLT has been loosely correlated with DRS. These tickers have moved in lockstep 44% of the time. This A.I.-generated data suggests there is some statistical probability that if ESLT jumps, then DRS could also see price increases.
| Ticker / NAME | Correlation To ESLT | 1D Price Change % | ||
|---|---|---|---|---|
| ESLT | 100% | -0.02% | ||
| DRS - ESLT | 44% Loosely correlated | +0.82% | ||
| LHX - ESLT | 42% Loosely correlated | +0.88% | ||
| KTOS - ESLT | 40% Loosely correlated | +4.50% | ||
| KRMN - ESLT | 38% Loosely correlated | -1.87% | ||
| RTX - ESLT | 37% Loosely correlated | -1.36% | ||
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