ESLT vs MRCY: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: ESLT is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ESLT and MRCY share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ESLT and MRCY exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Elbit Systems Ltd (Nasdaq and Tel Aviv: ESLT) is an Israel-based defense technology company that develops, manufactures, integrates and sustains military systems across land, sea, air, cyber and space domains. Its portfolio spans C4ISR (command, control and intelligence systems), electro-optics and thermal imaging, unmanned aerial and ground systems, precision munitions and artillery rockets (including its PULS launcher), helmet-mounted displays for pilots, and electronic warfare. The company employs more than 20,000 people across five continents and generates a large share of sales from export customers, with roughly 72% of its order backlog attributable to orders from outside Israel as of the end of 2025.

Full ESLT guide

Mercury Systems, based in Andover, Massachusetts, designs and manufactures hardware, software, and integrated subsystems that sit inside US and allied defense platforms. Its portfolio spans radio-frequency and microwave components, digital signal processing boards, embedded and secure processing modules, and fully integrated sensor-processing subsystems used in radar, electronic warfare, signals intelligence, missiles, and unmanned systems. The company positions itself as a trusted, domestically sourced supplier of open-architecture processing, sitting one layer below the large prime contractors that build the finished aircraft, ships, and weapons.

Full MRCY guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• ESLT drivers: Record backlog and revenue visibility; European rearmament tailwind.
• MRCY drivers: Record bookings and backlog; Margin recovery and turnaround execution.

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: The most cited risk is valuation: ESLT trades at a trailing price-to-earnings ratio around the low-to-mid 60s, far above the industrials-sector average, so disappointing execution could compress the multiple sharply. For MRCY, mercury is still early in a turnaround and has reported GAAP net losses as recently as fiscal 2025, so profitability remains inconsistent.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ESLT if you believe its drivers more; MRCY if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ESLT and MRCY guides.

ESLT. As of July 2026, ESLT traded around $800 per share with a market cap in the mid-$30 billion range, valuing the company at roughly 63 times trailing earnings, well above the industrials-sector average near 30. The premium reflects a record backlog, double-digit revenue growth and strong free cash flow. The small dividend (about $2.70 per share annually) signals a growth-and-reinvestment profile rather than an income story.

MRCY. Mercury trades at a rich multiple of revenue for its size, reflecting investor expectations that the turnaround converts a large backlog into higher-margin, cash-generative earnings rather than trailing profits, which have been near breakeven. GAAP results still swing around losses, so traditional price-to-earnings is of limited use and much of the valuation debate centers on adjusted EBITDA and free cash flow. The stock traded roughly in the low-100s per share in mid-July 2026, well above its levels of a year earlier, with a reported beta below the market average near 0.84.

Headline figures (approximate, JULY 2026): ESLT shows revenue (fy2025) ~$7.9B, revenue growth (yoy) ~16%, gaap eps (fy2025) ~$11.39, order backlog (q1 2026) ~$30.2B; MRCY shows revenue (ttm) ~$943M, fy2025 revenue ~$912M (vs ~$835M FY2024), q3 fy2026 revenue ~$236M (+11.5% organic YoY), backlog ~$1.6B (record, +18% YoY).

ESLT and MRCY 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 ESLT and MRCY exposure against your real portfolio. It is not an investment adviser.