Reviewing Wrap Technologies (NASDAQ:WRAP) and WISeKey International (NASDAQ:WKEY)

Wrap Technologies (NASDAQ:WRAP) and WISeKey International (NASDAQ:WKEY) are both small-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Insider and Institutional Ownership

8.8% of Wrap Technologies shares are held by institutional investors. Comparatively, 0.3% of WISeKey International shares are held by institutional investors. 33.3% of Wrap Technologies shares are held by company insiders. Comparatively, 33.5% of WISeKey International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Wrap Technologies and WISeKey International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wrap Technologies	$4.50 million	24.95	-$5.88 million	($0.30)	-7.27
WISeKey International	$11.88 million	5.10	-$13.45 million	N/A	N/A

Wrap Technologies has higher earnings, but lower revenue than WISeKey International.

Volatility & Risk

Wrap Technologies has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, WISeKey International has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Profitability

This table compares Wrap Technologies and WISeKey International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wrap Technologies	-300.11%	-194.93%	-83.58%
WISeKey International	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings for Wrap Technologies and WISeKey International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wrap Technologies	1	0	0	0	1.00
WISeKey International	1	0	2	0	2.33

WISeKey International has a consensus price target of $10.50, indicating a potential upside of 41.32%. Given WISeKey International’s stronger consensus rating and higher probable upside, analysts plainly believe WISeKey International is more favorable than Wrap Technologies.

Summary

WISeKey International beats Wrap Technologies on 9 of the 12 factors compared between the two stocks.

About Wrap Technologies

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company's flagship product is BolaWrap 150, a handheld remote restraint device that discharges a seven and a half-foot Kevlar tether, entangling an individual from a range of 10-25 feet. It also offers virtual reality training system, a law enforcement 3D training system employing immersive computer graphics VR with proprietary software-enabled content. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 2007 and is based in Tempe, Arizona.

About WISeKey International

WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates in two segments, IoT and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, it engages in financing, sales, and distribution activities; and sells semiconductors secure chips. The company was founded in 1999 and is headquartered in Zug, Switzerland.