European countries together with Russia rank number two and three in arms exports to other countries. Next to the US, Russia, UK, France, Germany have large defense industries that cater to the demands of the developing world. Earlier today in an article analyzing the global arms market, I discussed the top 10 defense contractors in the US.

Now lets take a look at the foreign defense-sector stocks that trade in the US markets as ADRs:

Company:BAE Systems (BAESY)
Country: U.K.
Dividend Yield: 4.03%

Company:Embraer (ERJ)
Country: Brazil
Dividend Yield: N/A

Company: IRKUT (IRKTY)
Country: Russia
Dividend Yield: N/A

Company:Metal Storm (MTSXY)
Country: Australia
Dividend Yield: N/A

Company:Rolls Royce (RYCEY)
Country: U.K.
Dividend Yield: 2.70%

Company:Thales (THLEY)
Country: France
Dividend Yield: 3.07%

British defense firm BAE Systems and is down 4.44% YTD. Rolls-Royce operates in both the defense segment and the civilian aerospace area manufacturing airplane engine and services. The stock is up 47% YTD.

Brazil-based Embraer(ERJ) is engaged in the manufacture of aircrafts for both civilian and defense purposes. YTD the stock is up 39%.

Russian defense supplies maker IRKUT is up 171% YTD. Australian firm Metal Storm does not pay a dividend and the stock closed at $0.40 last Friday. France-based Thales operates in the aerospace, space, defense, security and transportation markets.YTD Thales is up 15%.