Ondas vs. Draganfly: Which Drone Stock Is the Smarter Buy for Now?

The drone industry is rapidly transforming as the government, military and commercial sectors adopt autonomous systems on an unprecedented scale. The technology continues to reach new heights, fueled by breakthroughs in autonomous technology and AI-powered navigation.

The drone industry is witnessing rapid growth, with the global drone tech market expected to witness a CAGR of 14.3% from 2025 to 2030, according to a report from Grand View Research, whereas the commercial drone market is expected to witness a CAGR of 20.8% from 2025 to 2032, per the Fortune Business Insights report. For investors, this provides an exciting long-term opportunity.

Both Ondas Holdings (ONDS) and Draganfly (DPRO) are players in this domain, but operate from very different positions of scale and maturity. These companies bring to the table unique strengths, which make this an intriguing comparison for investors.

So, now the question arises: Which stock makes a better investment pick at present? Let us dive into the fundamentals, valuations, growth outlook and risks for each company.

Ondas Holdings: Focus on Autonomous and C-UAS

ONDS is a provider of private wireless data solutions through its Ondas Networks division and autonomous drones via Ondas Autonomous Systems (“OAS”). Of late, the company is focusing fully on its OAS unit, comprising Airobotics, American Robotics, Iron Drone and Apeiro Motion. Airobotics is the developer of Optimus System, an autonomous drone system, while Apeiro Motion develops ground robotics and tethered UAV solutions.

In the last reported quarter, OAS revenues jumped to $10 million, driven primarily by the deliveries for both its Optimus System and Iron Drone Radar counter-UAS platforms, as well as contributions from Apeiro ground robots. The OAS had a backlog of $22.2 million at the end of the third quarter, driven by strong demand trends for Optimus and Iron Drone systems. Consolidated backlog stood at $23.3 million, and it reached $40 million, including acquisitions. ONDS noted that the customer pipeline remains strong and expects to end 2025 with further backlog expansion.

It has secured GreenUAS Cleared List certification for the Optimus drone. This places the solution for the Department of War Blue List inclusion as an NDAA-compliant autonomous platform. It is working on preparing the domestic supply chain for Optimus and Iron Drone and anticipates to have U.S.-built systems available in the first quarter of 2026.

Ondas Holdings Inc. Price, Consensus and EPS Surprise

Ondas Holdings Inc. price-consensus-eps-surprise-chart | Ondas Holdings Inc. Quote

The company remains focused on the counter-UAS market with its Iron Drone System. Iron Drone system is an autonomous counter-drone solution where an intercepting drone guided by radar is used to counteract a drone attack using a parachute and ballistic net to lower it to the ground.

The focus on M&A is expected to strengthen portfolio offerings and broaden reach across multiple domains like unmanned ground systems, robotics and fiber optic communications, subsurface intelligence and demining robotics. It recently announced plans to acquire Sentry CS Ltd., an Israel-based Sentry CS develops Cyber-over-RF and Protocol-Manipulation counter-UAS technology. Before that, the company acquired a controlling interest in Insight Intelligent Sensors and in 4M Defense Ltd. In August, it entered into a definitive agreement to acquire a controlling 51% interest in Israel-based S.P.O Smart Precision Optics.

Nonetheless, heavy dependence on the OAS division for revenue growth in the increasingly crowded drone space is a concern. If a single large customer delays, reduces or cancels, revenues would decline materially. Higher operating expenses (related to the scaling of OAS and acquisitions) could pressure margins. Acquisitions also entail integration and execution risks.

Draganfly: A Key Player

Draganfly is a Canada-based drone solutions and systems developer. The company’s drones include Commander 3XL, Heavy Lift Drone, Commander 2 and Draganfly Medical Response Drone. Draganfly ’s Apex drone (launched last September) is aimed at the intelligence, surveillance and reconnaissance or ISR, marketed for both the military and public safety. Apex drone boasts dual payload capabilities and AI computing powered by NVIDIA’s chips. Further, DPRO’s NDAA-compliant FlexForce FPV (first-person view) drone can be flown individually or autonomously, or swarmed.

Notably, Draganfly has 5-plus drone systems that are all NDAA-compliant. As the United States and NATO aggressively eliminate non-compliant Chinese systems from critical infrastructure, this compliance advantage becomes a moat. Recently, the company introduced its Outrider Southern Border drone, which is a North American-built, NDAA-compliant multi-mission drone platform.

Yesterday, the company announced the conclusion of a two-day live border-security demonstration mission featuring the Outrider drone platform in collaboration with the Cochise County Sheriff’s office and noted that it generated “strong interest” from county and municipal law-enforcement departments as well as federal and state agencies.

Draganfly Inc. Price, Consensus and EPS Surprise

Draganfly Inc. price-consensus-eps-surprise-chart | Draganfly Inc. Quote

Increasing deals with the U.S. Military bode well. One of the most significant developments is the company’s first major U.S. Army FPV drone order, which is not only a product sale but also includes providing supply chain and logistical support. It also includes onsite assembly and manufacturing training to the Army to allow them to make “modifications on the fly.”

In the third quarter of 2025, DPRO reported revenues of $2.16 million, up 14.4% year over year, including $1.6 million of product sales and about $0.5 million of services revenues. Higher product sales signal that customer engagements are now translating into tangible product shipments rather than just service-related activity. The collaboration with Drone Nerds, one of the largest resellers in the United States, for its NDAA-compliant drone portfolio, will expand its customer reach. It is also working on setting up (via contract manufacturing arrangement) seven new plants in the United States. Draganfly is right now in the “tooling” phase and expects these plants to boost capacity by more than quadruple by the end of next year.

A strong balance sheet is a significant catalyst. For a company with just more than $2 million in quarterly revenues, a $69.9 million cash in hand, and minimal debt on the balance sheet offers strategic flexibility to ramp up capacity and invest in research and development and AI-driven capabilities. The financial firepower well positions DPRO to capture opportunities in the drone space.

Price Performance and Valuation for ONDS & DPRO

Over the past six months, ONDS and DPRO have registered gains of 731.8% and 261.8%, respectively.

In terms of the forward 12-month price/sales ratio, ONDS is trading at 39.28X, higher than DPRO’s 3.06X.

How Do Zacks Estimates Compare for ONDS & DPRO?

Analysts have revised earnings estimates by 9.4% for ONDS for the current fiscal in the past 60 days.

There is a marginal upward revision for DPRO’s bottom line.

ONDS or DPRO: Which Is a Better Pick?

ONDS currently carries a Zacks Rank #3 (Hold), while DPRO carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In terms of Zacks Rank, DPRO emerges as a better pick right now.

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This article originally published on Zacks Investment Research (zacks.com).

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