Critical Analysis: Amadeus IT Group (OTCMKTS:AMADY) & Wearable Devices (NASDAQ:WLDS)

Wearable Devices (NASDAQ:WLDS) and Amadeus IT Group (OTCMKTS:AMADY) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares Wearable Devices and Amadeus IT Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wearable Devices	$650,000.00	2.74	-$8.11 million	N/A	N/A
Amadeus IT Group	$7.37 billion	3.41	$1.51 billion	$3.53	15.79

Amadeus IT Group has higher revenue and earnings than Wearable Devices.

Institutional & Insider Ownership

0.2% of Wearable Devices shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Wearable Devices and Amadeus IT Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wearable Devices	N/A	N/A	N/A
Amadeus IT Group	20.35%	28.72%	12.43%

Volatility & Risk

Wearable Devices has a beta of 3.11, indicating that its stock price is 211% more volatile than the S&P 500. Comparatively, Amadeus IT Group has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Wearable Devices and Amadeus IT Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wearable Devices	1	0	0	0	1.00
Amadeus IT Group	1	2	3	1	2.57

Summary

Amadeus IT Group beats Wearable Devices on 9 of the 11 factors compared between the two stocks.

About Wearable Devices

Wearable Devices Ltd. engages in the development of a non-invasive neural input interface for controlling digital devices using subtle touchless finger movements. The company offers Mudra development kits that enable users to control digital devices, including consumer electronics, smart watches, smartphones, AR glasses, VR headsets, televisions, personal computers and laptop computers, drones, robots, and others through finger movements and hand gestures; and SNC sensor module, an operating system (OS) software package and algorithm package to customers. It also provides Mudra Band, a neural input wristband, which allows users to control Apple ecosystem devices, including iPhone, Mac computer, Apple TV, and iPad using subtle touchless finger movements and gestures; and Mudra XR wristband, a wearable controller for smart glasses and spatial computing that supports hands-free interaction. The company serves consumer electronics companies and brands, industrial manufacturing companies, information technology and software solutions providers, software development studios, academia and research universities, and B2C market. Wearable Devices Ltd. was incorporated in 2014 and is headquartered in Yokneam Illit, Israel.

About Amadeus IT Group

Amadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide. The company operates through three segments: Air Distribution, Air IT Solutions, and Hospitality & Other Solutions. The company acts as an international network providing real-time search, pricing, booking, and ticketing services, and other processing solutions through Amadeus GDS, Altéa PSS, and New Skies platforms. It also offers travel providers a portfolio of technology solutions, which automate certain mission-critical business processes, such as reservations, inventory management, and departure control. In addition, the company is involved in the provision of software development and definition, software distribution, regional support, data processing, intermediation, computer consulting, installation of industrial machinery and equipment, consultancy and technology development services for payments, and information technology services; financial activities; and e-commerce business. It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, land and sea transport companies, travel sellers and brokers, and travel buyers. The company was formerly known as Amadeus IT Holding, S.A. and changed its name to Amadeus IT Group, S.A. in August 2016. Amadeus IT Group, S.A. was founded in 1987 and is headquartered in Madrid, Spain.