Critical Analysis: ICTS International (OTCMKTS:ICTSF) versus SoundThinking (NASDAQ:SSTI)

SoundThinking (NASDAQ:SSTI) and ICTS International (OTCMKTS:ICTSF) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Insider & Institutional Ownership

60.7% of SoundThinking shares are owned by institutional investors. 10.4% of SoundThinking shares are owned by insiders. Comparatively, 62.4% of ICTS International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

SoundThinking has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, ICTS International has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for SoundThinking and ICTS International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoundThinking	0	0	5	0	3.00
ICTS International	0	0	0	0	0.00

SoundThinking currently has a consensus price target of $20.80, suggesting a potential upside of 73.91%. Given SoundThinking’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SoundThinking is more favorable than ICTS International.

Valuation and Earnings

This table compares SoundThinking and ICTS International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoundThinking	$102.03 million	1.50	-$9.18 million	($0.79)	-15.14
ICTS International	$483.31 million	0.33	-$4.23 million	N/A	N/A

ICTS International has higher revenue and earnings than SoundThinking.

Profitability

This table compares SoundThinking and ICTS International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoundThinking	-9.74%	-13.76%	-7.36%
ICTS International	N/A	N/A	N/A

About SoundThinking

SoundThinking, Inc., a public safety technology company that provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform, an integrated suite of data-driven tools that enable law enforcement and community violence prevention and health organizations to be efficient in public safety outcomes. It offers ShotSpotter, an acoustic gunshot detection system; CrimeTracer, a law enforcement search engine; CaseBuilder, an investigation management system; and ResourceRouter, a software that directs patrol and community anti-violence resources to help maximize their impact. The company sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.

About ICTS International

ICTS International N.V. provides airport security and other aviation services, and authentication technology services in the Netherlands, Germany, the United States, Spain, and internationally. It offers aviation security services, including security screening, behavior detection on crowds and queues, perimeter guarding/ patrolling, CCTV surveillance and/or alarm resolution, and vehicle marshalling. It also provides above wing security services, such as security interviewing, behavior detection, and escort of valuables and weapons; and handling services. In addition, it offers below wing services, comprising ramp and door guarding, interior and exterior searches, catering and bag room guarding, and selectee search; cargo security services, which include cargo screening, explosives detection dogs, access control, and vehicle marshalling services; private charter flight and cargo security screening, catering and aircraft Security Screening, aircraft search, and employee screening services; general security services, which comprise security search and screening, access control, perimeter guarding/patrolling, security host and reception, and CCTV surveillance and/or alarm resolution services; and training/consulting/auditing services. Further, it offers aviation security technology, including New Advanced Passenger Screening, an IT-system that enables pre-departure analysis of passenger information, and X-Check and I-Check that supports airline staff, security or filtering agents with customer processing; SaaS for identity verification and fraud prevention from physical and digital ID documents; and non-security services, such as agent services, guard services, queue monitors, aircraft cleaning, janitorial, skycap passengers luggage, wheelchair attendant, baggage handling, cruise line baggage transfer, VIP meet and greet services, equipment for passengers, and shuttle services to airline crews. The company was founded in 1982 and is based in Schiphol, the Netherlands.