AVAV vs ONDS: How AeroVironment and Ondas Holdings Compare (2026)
Short answer
AVAV (AeroVironment) and ONDS (Ondas Holdings) are often compared because they share investment themes, but they are different businesses. AeroVironment (AVAV) is a defense technology company specializing in unmanned and autonomous systems. Ondas Holdings Inc. Neither is universally better: pick by which thesis you are expressing and what you already own. This is descriptive, not a recommendation.
What does AeroVironment (AVAV) do?
AeroVironment (AVAV) is a defense technology company specializing in unmanned and autonomous systems. It is best known for small, man-portable drones used by militaries for reconnaissance and surveillance, and for loitering munitions, notably the Switchblade family, which are precision-strike drones that have drawn significant attention from conflicts and rising global demand. AeroVironment also builds larger unmanned aircraft systems, uncrewed ground robots, and develops autonomy software and counter-drone solutions. Its primary customer is the US Department of Defense, with growing international and allied-government sales. The company has expanded through acquisitions into adjacent areas such as space, loitering munitions, and autonomy. The investment story centers on the structural growth of drones and autonomous systems in modern warfare, where small, attritable, intelligent systems are reshaping how militaries operate. Founded in 1971 and historically associated with pioneering work in efficient flight, AeroVironment is headquartered in Arlington, Virginia, and is a mid-cap defense growth company tied closely to defense budgets and procurement.
What does Ondas Holdings (ONDS) do?
Ondas Holdings Inc. operates two distinct businesses. Ondas Autonomous Systems (OAS) is the larger and faster-growing segment: through subsidiaries such as American Robotics and Airobotics it sells the Optimus System, marketed as the first U.S. FAA-certified small drone for automated aerial security and data capture, and through its Iron Drone Raider line it sells autonomous counter-drone (counter-UAS) systems used to detect and intercept hostile drones. Ondas Networks is the original business: it develops industrial wireless networking technology, including its FullMAX platform built on the IEEE 802.16t standard, aimed at railroads and other critical-infrastructure operators that need private, mission-critical data networks.
AVAV vs ONDS: how do they differ?
Both fit overlapping themes, but they are not interchangeable. AeroVironment is best understood through its own drivers, and Ondas Holdings through its. The useful comparison is which set of drivers and risks you want exposure to.
- AVAV drivers: Loitering munitions demand; Small unmanned systems franchise.
- ONDS drivers: Drone and counter-drone demand; Large backlog and aggressive 2026 targets.
AVAV vs ONDS: how they make money and what they cost
AVAV. AeroVironment trades on a growth multiple that reflects its leadership in fast-growing drone and loitering-munition categories rather than current earnings. The valuation embeds expectations of sustained defense procurement growth and successful expansion into autonomy and space. It is more volatile and richly valued than traditional defense primes, sensitive to order timing and conflict-driven demand swings.
ONDS. Reading a small drone and defense-technology company is different from reading a mature business. Ondas has almost no earnings, so the focus shifts to orders, backlog, and revenue growth versus cash burn rather than profit multiples. Watch the gap between announced orders and recognized revenue, since defense contracts can be lumpy and slow to convert. Pay close attention to dilution: Ondas has funded itself with large, repeated stock and warrant sales, so per-share value can be eroded even as the business grows. Much of the market value reflects a premium on the drone and defense theme and on future targets rather than current results, which is why the stock can move violently in both directions. Figures here are approximate and change quickly; confirm the latest numbers in Ondas filings before relying on them.
Headline figures (approximate, early 2026): AVAV shows revenue (ttm) ~$800 million-$1 billion, operating margin ~low-double-digit percent, net income (ttm) Modest; growth reinvested; ONDS shows revenue (fy2025) About $50.7 million, up roughly 605% year over year, backlog (year-end 2025) About $68.3 million, net loss (fy2025) Roughly $133 million. A cheaper-looking multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is actually compounding.
Which fits which kind of investor
Both share a theme, but they suit different temperaments. AeroVironment's case leans on loitering munitions demand, and Ondas Holdings's on drone and counter-drone demand. A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: AeroVironment depends heavily on US defense procurement, so budget cycles, appropriations timing, and program decisions cause lumpy, hard-to-predict revenue and order flow. For ONDS, ondas carries a stack of risks typical of a speculative small-cap.
AVAV or ONDS: which should you pick?
The bottom line: AVAV vs ONDS
AVAV and ONDS are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AVAV and ONDS exposure against your real portfolio. It is not an investment adviser.
Build a basket around AVAV with Walnut
Use AeroVironment as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is the difference between AVAV and ONDS?
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AeroVironment (AVAV) is a defense technology company specializing in unmanned and autonomous systems. Ondas Holdings Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is AVAV or ONDS the better stock?
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Walnut is informational, not investment advice. Neither is universally better; AVAV and ONDS suit different views and risk levels. Compare what each does, how they make money, and the risks, then decide which fits your thesis and what you already own.
Should you own both AVAV and ONDS?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both before you add the second.
What are the risks of AVAV vs ONDS?
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AVAV: AeroVironment depends heavily on US defense procurement, so budget cycles, appropriations timing, and program decisions cause lumpy, hard-to-predict revenue and order flow. It is mid-cap and competes against far larger defense primes as well as a wave of new drone and autonomy startups, which could pressure pricing and share. Demand spikes tied to specific conflicts may not be sustainable, and any easing of geopolitical tension could slow orders. Acquisitions add integration risk and have raised the share count and balance-sheet complexity. The stock is volatile and trades on a growth multiple that embeds optimistic defense-spending and order assumptions, leaving it sensitive to any procurement disappointment. ONDS: Ondas carries a stack of risks typical of a speculative small-cap. The revenue base is still small relative to its market value, and the company is deeply unprofitable with large ongoing cash burn. It has funded itself through repeated and very large stock and warrant offerings, so existing shareholders face significant dilution, and the company has sought authorization to issue far more shares. Execution risk is high: hitting aggressive growth targets requires scaling manufacturing and integrating multiple acquisitions at once. Defense and government procurement is lumpy and slow, so announced orders may not convert to revenue on the expected timeline. The company also competes against larger, better-capitalized drone and defense players. The stock is volatile and can move sharply on news, sentiment, and capital-raise activity.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell AVAV or ONDS; figures are approximate and dated. Verify current data before investing.