FEIM vs MRCY

For growth investors, Frequency Electronics, Inc.

(FEIM) is the stronger pick with 26. 3% revenue growth year-over-year, versus 9. 2% for Mercury Systems, Inc. (MRCY). Frequency Electronics, Inc. (FEIM) offers the better valuation at 22. 3x trailing P/E (74. 1x forward), making it the more compelling value choice. Analysts rate Mercury Systems, Inc. (MRCY) a "Buy" — based on 19 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Frequency Electronics, Inc.

is actually cheaper at 74. 1x.

Over the past 5 years, Frequency Electronics, Inc.

(FEIM) delivered a total return of +471. 5%, compared to +37. 2% for Mercury Systems, Inc. (MRCY). Over 10 years, the gap is even starker: FEIM returned +473. 8% versus MRCY's +335. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Mercury Systems, Inc.

(MRCY) is the lower-risk stock at 1. 76β versus Frequency Electronics, Inc. 's 2. 17β — meaning FEIM is approximately 23% more volatile than MRCY relative to the S&P 500. On balance sheet safety, Frequency Electronics, Inc. (FEIM) carries a lower debt/equity ratio of 16% versus 44% for Mercury Systems, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Frequency Electronics, Inc.

(FEIM) is pulling ahead at 26. 3% versus 9. 2% for Mercury Systems, Inc. (MRCY). On earnings-per-share growth, the picture is similar: Frequency Electronics, Inc. grew EPS 316. 9% year-over-year, compared to 72. 7% for Mercury Systems, Inc.. Over a 3-year CAGR, FEIM leads at 13. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Frequency Electronics, Inc.

(FEIM) is the more profitable company, earning 34. 1% net margin versus -4. 2% for Mercury Systems, Inc. — meaning it keeps 34. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FEIM leads at 16. 8% versus -2. 2% for MRCY. At the gross margin level — before operating expenses — FEIM leads at 43. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Frequency Electronics, Inc.

(FEIM) trades at 74. 1x forward P/E versus 91. 8x for Mercury Systems, Inc. — 17. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MRCY: 5. 2% to $92. 67.

In this comparison, FEIM (1.

8% yield) pays a dividend. MRCY does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Frequency Electronics, Inc.

(FEIM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1. 8% yield, +473. 8% 10Y return). Mercury Systems, Inc. (MRCY) carries a higher beta of 1. 76 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (FEIM: +473. 8%, MRCY: +335. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (FEIM (Technology) and MRCY (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: FEIM is a small-cap high-growth stock; MRCY is a small-cap quality compounder stock. FEIM pays a dividend while MRCY does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.