ONDS vs. DPRO: Which Drone Tech Stock Is the Better Pick Now?

The global drone industry has reached a pivotal growth phase, driven by broad adoption across the commercial, government and military sectors. According to a report from Mordor Intelligence, the global drone tech market is expected to witness a CAGR of 9.3% from 2026 to 2031. The convergence of drones with artificial intelligence (AI), cloud computing and edge processing is further driving adoption across verticals.

Both Ondas Inc. ONDS and Draganfly, Inc. 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.

Therefore, the question arises: which stock is a better investment pick at present? Let us dive into the fundamentals, valuations, growth outlook and risks for each company.

ONDS: OAS Becomes Primary Growth Engine

Ondas’s Ondas Autonomous Systems (“OAS”) business is transitioning into a high-visibility growth engine, benefiting from increased deployments of Iron Drone Raider and Optimus autonomous platforms, along with initial revenue contributions from recently acquired businesses, such as Apeiro Motion.

A rapidly expanding opportunity set encompassing strategic partnerships (Rift Dynamics) and NDAA-compliant U.S. production readiness bodes well for OAS. Opportunities in the C-UAS segment and ground robotics offerings, particularly within the Unmanned Ground Vehicle portfolios, further strengthen Ondas’ long-term growth profile.

To complement organic expansion, ONDS is focusing on M&A to strengthen portfolio offerings and broaden reach across multiple domains like unmanned ground systems, robotics and fiber optic communications, subsurface intelligence and demining robotics. In the past few months, it has acquired Sentrycs, Apeiro Motion, Zickel, among others. Recently, ONDS acquired Roboteam (multi-mission tactical ground robotics) and announced an agreement to buy Rotron Aero, a UK-based developer of advanced UAS and long-range autonomous platforms.

ONDS announced preliminary financial results for 2025 and provided updated revenue targets for 2026. Fourth-quarter 2025 revenues are expected between $27 million and $29 million, indicating a 51% increase over its prior target. As of Dec. 31, 2025, backlog (preliminary estimates) was $65.3 million, up 180% from $23.3 million as of Nov. 13.

ONDS’ pro-forma cash balance exceeded $1.5 billion, adjusted for its recently completed equity offering of approximately $1 billion, providing substantial financial flexibility for both organic and inorganic expansion.

Ondas Holdings Inc. Price, Consensus and EPS Surprise

 

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

For 2026, Ondas has raised its revenue outlook to $170-$180 million, suggesting a 25% increase over the previous target of $140 million, which included an estimated $30-million contribution from Roboteam.

However, this outlook assumes only a “modest contribution” from Ondas Networks. Heavy reliance on OAS for revenue growth in the increasingly crowded drone space is concerning. For ONDS, if a single large customer delays, reduces or cancels, revenues would decline materially.

Ondas is in the middle of a massive transition and already incurring sizable expenses. The company is investing heavily in infrastructure building and team expansion. These moves strengthen long-term competitive moat, but amplify short-term financial pressure. Therefore, many acquisitions in such a short period can create integration overload risks.

DPRO: Holds Steady

Draganfly is a Canada-based drone solutions and systems developer. The company’s drones include the Commander 3XL, Heavy Lift Drone, Commander 2 and Draganfly Medical Response Drone. The company’s Apex drone is aimed at ISR, marketed for the military and public safety. Apex drone boasts dual payload capabilities and AI computing, powered by NVIDIA’s chips. 

Increasing deals with the U.S. military is a key catalyst. DPRO recently won a contract along with its partner, DelMar Aerospace Corporation, to supply Flex FPV (first-person view) Drones and Training to the U.S. Air Force Special Operations Command. 

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 for the Army to allow them to make “modifications on the fly.” DPRO’s NDAA-compliant FlexForce FPV  drone can be flown individually or autonomously, or swarmed.

DPRO 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. In October 2025, the company introduced its Outrider Southern Border drone, which is a North American-built, NDAA-compliant multi-mission drone platform.

Draganfly Inc. Price, Consensus and EPS Surprise

 

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

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. On the last reported quarter’s earnings call, DPRO noted that it is working on setting up (via contract manufacturing arrangement) seven 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.

DPRO is expanding its footprint in the demining vertical with collaborations with Autonome Labs and SafeLane. With its data, expertise and AI-powered aerial mapping capabilities, DPRO is well-positioned to expand in this niche market. In the last reported quarter, the company achieved 14.4% year-over-year revenue growth, supported by rising product sales.

A strong cash profile can be a game-changer. A company with just more than C$2 million in quarterly revenues, C$69.9 million in cash in hand and minimal debt on the balance sheet at the end of the third quarter, provides ample flexibility. 

Price Performance & Valuation for ONDS & DPRO

Over the past six months, ONDS and DPRO have registered gains of 110.1% and 84.8%, respectively.

In terms of the forward 12-month price/sales ratio, ONDS is trading at 21.27X, higher than DPRO’s 2.44X.

How Do Estimates Compare for ONDS & DPRO?

Analysts have revised earnings estimates down by 3.6% for ONDS for the current fiscal year in the past 60 days.

Estimates have been revised upwards for DPRO’s bottom line over the same time frame.

ONDS or DPRO: Which Is a Better Pick?

ONDS 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.

While both companies are well-positioned to benefit from the lucrative global drone market, DPRO emerges as the better pick at present due to its favorable Zacks Rank.

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

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