ZACKS·2025-11-19 14:26Industry Overview - The drone industry is rapidly transforming with significant adoption of autonomous systems across government, military, and commercial sectors, driven by advancements in autonomous technology and AI-powered navigation [1] - The global drone tech market is projected to grow at a CAGR of 14.3% from 2025 to 2030, while the commercial drone market is expected to grow at a CAGR of 20.8% from 2025 to 2032, presenting long-term investment opportunities [2] Ondas Holdings (ONDS) - Ondas Holdings focuses on private wireless data solutions and autonomous drones through its Ondas Autonomous Systems (OAS) division, which includes companies like Airobotics and American Robotics [4] - In the last reported quarter, OAS revenues reached $10 million, with a backlog of $22.2 million, indicating strong demand for its Optimus and Iron Drone systems [5] - The company has secured GreenUAS Cleared List certification for the Optimus drone, positioning it for inclusion in the Department of War Blue List as an NDAA-compliant platform [6] - Ondas is concentrating on the counter-UAS market with its Iron Drone System, which utilizes an intercepting drone to counteract drone attacks [7] - The company is pursuing mergers and acquisitions to enhance its portfolio, including plans to acquire Sentry CS Ltd. and other companies [8] - There are concerns regarding heavy dependence on the OAS division for revenue growth, as delays or cancellations from large customers could significantly impact revenues [9] Draganfly (DPRO) - Draganfly is a Canada-based developer of drone solutions, with a product lineup that includes various drones aimed at military and public safety applications [11] - The company has over five NDAA-compliant drone systems, providing a competitive advantage as the U.S. and NATO phase out non-compliant systems [12] - Draganfly's recent border-security demonstration with its Outrider drone generated strong interest from law enforcement and federal agencies [13] - The company received its first major U.S. Army FPV drone order, which includes supply chain support and training for onsite assembly [14] - In Q3 2025, Draganfly reported revenues of $2.16 million, a 14.4% increase year-over-year, indicating improved customer engagement and product sales [14] - Draganfly has a strong balance sheet with $69.9 million in cash and minimal debt, allowing for strategic investments in capacity and R&D [15] Price Performance and Valuation - Over the past six months, ONDS has gained 731.8%, while DPRO has increased by 261.8% [16] - ONDS is trading at a forward 12-month price/sales ratio of 39.28X, significantly higher than DPRO's 3.06X [19] - Analysts have revised earnings estimates for ONDS upward by 9.4% in the past 60 days, while DPRO has seen marginal upward revisions [17][21] - In terms of Zacks Rank, DPRO is currently rated as a better investment pick with a Zacks Rank 2 (Buy), compared to ONDS's Zacks Rank 3 (Hold) [22]