Advertisement
DRS vs ESLT
Which Stock Would AI Choose? Leonardo DRS (DRS) vs. Elbit Systems (ESLT) Stock Comparison
1. Key Takeaways
- Both DRS and ESLT are defense-electronics specialists benefiting from rising global military budgets, but they differ sharply in scale and geographic mix.
- Leonardo DRS is U.S.-centric, generating $3.65 billion in 2025 revenue with an $8.7 billion backlog; Elbit Systems is Israel-based with roughly $7.9 billion in 2025 revenue and a $28.1 billion backlog that is 72% international.
- Elbit has delivered stronger recent momentum — roughly doubling over the past year — while DRS has posted steadier, less volatile performance with a lower market beta.
- Elbit trades at a materially richer valuation than DRS, reflecting faster growth expectations already priced into the shares.
- DRS offers a net-cash balance sheet and U.S. defense-budget exposure; Elbit carries elevated geopolitical and capacity-constraint risk tied to the Middle East.
2. Introduction
This stock comparison examines Leonardo DRS, Inc. (DRS) and Elbit Systems Ltd. (ESLT), two publicly traded defense-technology companies that have attracted strong investor attention amid elevated global security spending. Although both operate in advanced sensing, electronic warfare, and mission-critical electronics, their business models, geographic exposures, and growth profiles differ meaningfully. Traders and investors weighing relative performance and market positioning may find the contrast instructive: one is a U.S.-focused mid-cap contractor, while the other is a globally diversified Israeli defense group with a substantially larger backlog. The comparison below focuses on recent results, momentum, and the risk factors shaping each name.
2. DRS Overview and Recent Performance
Leonardo DRS is a U.S.-based provider of advanced sensing, network computing, force protection, and electric power and propulsion systems for the U.S. military and allied forces. In recent quarters, DRS has posted consistent double-digit organic growth: full-year 2025 revenue rose 13% to $3.65 billion, with net earnings of $278 million, or $1.03 per share (EPS). Demand was led by tactical radars, electric power and propulsion, advanced infrared sensing, and counter-unmanned-aerial-systems technologies.
Bookings have been a key positive, with a book-to-bill ratio at or above 1.2x for a fourth consecutive year and year-end backlog of $8.7 billion. Management has also leaned into the cycle, raising internal research-and-development spending by 40% and capital expenditures by more than 60% in 2025. These investments — including a new naval-power facility in Charleston, South Carolina — signal confidence in future demand but have pressured near-term margins, alongside higher input costs tied to materials such as germanium. The company carries a net-cash balance sheet and pays a modest dividend, reinforcing a steadier, lower-beta profile.
4. ESLT Overview and Recent Performance
Elbit Systems is an Israel-based defense-technology company developing airborne, land, naval, and cyber solutions, including command, control, communications, computers, and intelligence (C4I) systems, intelligence, surveillance, target acquisition, and reconnaissance (ISTAR) and electronic-warfare (EW) products, and munitions. In recent quarters, ESLT has delivered accelerating results: full-year 2025 revenue increased 16% to roughly $7.9 billion, while non-GAAP EPS rose 46% to $12.75. Its fourth quarter marked the first time quarterly revenue surpassed $2 billion.
Backlog reached a record $28.1 billion, up about 24% year over year, with 72% attributable to international customers — Europe has become a major market. Free cash flow surged 73% to $553 million, and the company raised capital expenditures to expand capacity for munitions and electronic assemblies. Recent large contract wins, including a $2.3 billion international agreement, support multi-year visibility. However, growth has been partly driven by conflict-related demand, and the company faces capacity constraints and geopolitical risks in the Middle East that investors weigh against its strong momentum.
5. Trending AI Robots
Tickeron operates a large marketplace of AI-powered trading bots, and its Trending AI Robots page curates only the models best suited to current market conditions. Rather than listing every available strategy, Tickeron highlights a focused selection spanning varied trading styles, timeframes, risk profiles, and sets of tickers — including both DRS and ESLT across numerous bots. These automated systems are built to adapt to shifting momentum, volatility, and trend regimes, offering traders a data-driven complement to manual analysis. Because no single strategy fits every market environment, reviewing the Trending AI Robots section can help identify which automated approaches are currently performing most consistently.
6. Head-to-Head Comparison
The core trade-off between these two stocks is scale and growth versus stability and geography. ESLT is roughly three to four times DRS's market capitalization and has generated faster revenue and earnings growth, with a backlog more than three times larger. That growth, however, is partly tied to conflict-driven procurement in Europe and Israel and carries greater geopolitical sensitivity. DRS, by contrast, is anchored to U.S. defense budgets, enjoys a net-cash position, and has historically traded with lower volatility, but its growth profile and backlog are smaller.
On valuation, ESLT trades at a notably higher price-to-earnings (P/E) multiple than DRS, meaning the market is already pricing in continued above-average growth. Margin trends also differ: DRS has absorbed near-term margin pressure from elevated internal investment, while ESLT has expanded margins for four consecutive years despite capacity constraints. From a sentiment standpoint, ESLT has shown stronger relative performance and institutional accumulation, whereas DRS presents a more conservative, cash-generative profile.
7. Tickeron AI Verdict
Based on observable factors such as trend consistency, momentum, backlog visibility, and relative positioning, Tickeron's AI would likely favor ESLT on a momentum-adjusted basis, given its stronger recent share-price trajectory, accelerating earnings, and record order backlog. The AI framework would weigh this against the stock's higher valuation and geopolitical sensitivity. DRS, meanwhile, would appeal to a more stability-oriented signal set, thanks to its net-cash balance sheet and consistent U.S. demand. As with any model-driven assessment, the outcome is probabilistic and reflects current conditions rather than a definitive prediction.
8. 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.
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.
Momentum Indicator for DRS turns positive, indicating new upward trend
DRS saw its Momentum Indicator move above the 0 level on October 26, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned positive. In 67 of the 81 cases, the stock moved higher in the following days. The odds of a move higher are at 83%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for DRS just turned positive on October 26, 2026. Looking at past instances where DRS's MACD turned positive, the stock continued to rise in 29 of 37 cases over the following month. The odds of a continued upward trend are 78%.
Following a +4.29% 3-day Advance, the price is estimated to grow further. Considering data from situations where DRS advanced for three days, in 202 of 262 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
Bearish Trend Analysis
The 10-day RSI Indicator for DRS moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In 28 of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at 74%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 28 of 51 cases where DRS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 55%.
DRS moved below its 50-day moving average on November 04, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DRS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 56%.
DRS broke above its upper Bollinger Band on October 29, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for DRS entered a downward trend on October 28, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 54 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.142) is normal, around the industry mean (5.045). P/E Ratio (27.049) is within average values for comparable stocks, (17.993). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.110). Dividend Yield (0.011) settles around the average of (0.058) among similar stocks. P/S Ratio (2.636) is also within normal values, averaging (18.367).
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating steady price growth. DRS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 65 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 73 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DRS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock worse than average.
ESLT in upward trend: price may jump up because it broke its lower Bollinger Band on November 04, 2026
ESLT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 24 of 33 cases where ESLT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 73%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 10-day moving average for ESLT crossed bullishly above the 50-day moving average on October 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.
Following a +7.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where ESLT advanced for three days, in 240 of 346 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
Bearish Trend Analysis
The 10-day RSI Indicator for ESLT moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In 20 of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at 47%.
The Momentum Indicator moved below the 0 level on November 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ESLT as a result. In 51 of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 54%.
The Moving Average Convergence Divergence Histogram (MACD) for ESLT turned negative on November 04, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In 26 of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at 48%.
ESLT moved below its 50-day moving average on November 04, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ESLT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 50%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 28 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. ESLT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 53 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 55 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 94 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.922) is normal, around the industry mean (5.045). P/E Ratio (47.576) is within average values for comparable stocks, (17.993). ESLT's Projected Growth (PEG Ratio) (11.650) is slightly higher than the industry average of (3.110). Dividend Yield (0.006) settles around the average of (0.058) among similar stocks. P/S Ratio (4.143) is also within normal values, averaging (18.367).
ESLT | ||
|---|---|---|
OUTLOOK RATING 1..100 | 34 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 94 Overvalued | |
PROFIT vs RISK RATING 1..100 | 28 | |
SMR RATING 1..100 | 55 | |
PRICE GROWTH RATING 1..100 | 44 | |
P/E GROWTH RATING 1..100 | 53 | |
SEASONALITY SCORE 1..100 | n/a |
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 74% | 2 days ago 47% |
| Stochastic ODDS (%) | 2 days ago 55% | 2 days ago 66% |
| Momentum ODDS (%) | 2 days ago 83% | 2 days ago 54% |
| MACD ODDS (%) | 2 days ago 78% | 2 days ago 48% |
| TrendWeek ODDS (%) | 2 days ago 78% | 2 days ago 52% |
| TrendMonth ODDS (%) | 2 days ago 56% | 2 days ago 49% |
| Advances ODDS (%) | 10 days ago 77% | 10 days ago 69% |
| Declines ODDS (%) | 4 days ago 56% | 4 days ago 50% |
| BollingerBands ODDS (%) | 2 days ago 74% | 2 days ago 73% |
| Aroon ODDS (%) | 2 days ago 58% | N/A |
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 overvalued. 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 while ESLT’s FA Score has 1 green FA rating(s).
- DRS’s FA Score: 0 green, 5 red.
- ESLT’s FA Score: 1 green, 4 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 3 TA indicator(s) are bullish while ESLT’s TA Score has 4 bullish TA indicator(s).
- DRS’s TA Score: 3 bullish, 6 bearish.
- ESLT’s TA Score: 4 bullish, 5 bearish.
Price Growth
DRS (@Aerospace & Defense) experienced а +0.06% price change this week, while ESLT (@Aerospace & Defense) price change was -9.73% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was -12.53%. For the same industry, the average monthly price growth was -16.65%, and the average quarterly price growth was -24.23%.
Reported Earning Dates
ESLT is expected to report earnings on Nov 17, 2026.
Industries' Descriptions
@Aerospace & Defense (-12.53% 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.
Advertisement
DRS and
Correlation & Price change
A.I.dvisor indicates that over the last year, DRS has been loosely correlated with MRCY. These tickers have moved in lockstep 64% of the time. This A.I.-generated data suggests there is some statistical probability that if DRS jumps, then MRCY could also see price increases.
| Ticker / NAME | Correlation To DRS | 1D Price Change % | ||
|---|---|---|---|---|
| DRS | 100% | -8.59% | ||
| MRCY - DRS | 64% Loosely correlated | -10.66% | ||
| KTOS - DRS | 63% Loosely correlated | -12.27% | ||
| LHX - DRS | 54% Loosely correlated | -6.46% | ||
| BWXT - DRS | 53% Loosely correlated | -7.83% | ||
| ESLT - DRS | 53% Loosely correlated | -7.03% | ||
More | ||||
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 51% 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% | -7.03% | ||
| DRS - ESLT | 51% Loosely correlated | -8.59% | ||
| KTOS - ESLT | 49% Loosely correlated | -12.27% | ||
| MRCY - ESLT | 44% Loosely correlated | -10.66% | ||
| KRMN - ESLT | 42% Loosely correlated | -13.52% | ||
| VOYG - ESLT | 42% Loosely correlated | -7.05% | ||
More | ||||
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| AVUV | 124.62 | 1.82 | +1.48% |
| Avantis U.S. Small Cap Value ETF (AVUV) | |||
| NAUG | 32.41 | 0.19 | +0.57% |
| Innovator Growth-100 Power Buffer ETF - August (NAUG) | |||
| MYCH | 24.64 | 0.03 | +0.12% |
| State Street My2028 Corporate Bond ETF (MYCH) | |||
| CQTM | 17.32 | -0.12 | -0.69% |
| Corgi Quantum Computing ETF (CQTM) | |||
| DAPP | 14.45 | -0.22 | -1.50% |
| VanEck Digital Transformation ETF (DAPP) | |||