SMX (Security Matters) Public (NASDAQ:SMX) versus Frequency Electronics (NASDAQ:FEIM) Critical Review

SMX (Security Matters) Public (NASDAQ:SMX) and Frequency Electronics (NASDAQ:FEIM) are both small-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares SMX (Security Matters) Public and Frequency Electronics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMX (Security Matters) Public	N/A	N/A	-$169.18 million	N/A	N/A
Frequency Electronics	$63.23 million	11.09	-$900,000.00	($0.09)	-789.22

Frequency Electronics has higher revenue and earnings than SMX (Security Matters) Public.

Profitability

This table compares SMX (Security Matters) Public and Frequency Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SMX (Security Matters) Public	N/A	N/A	N/A
Frequency Electronics	-1.43%	-1.56%	-0.98%

Institutional and Insider Ownership

15.7% of SMX (Security Matters) Public shares are owned by institutional investors. Comparatively, 58.6% of Frequency Electronics shares are owned by institutional investors. 9.4% of SMX (Security Matters) Public shares are owned by insiders. Comparatively, 28.0% of Frequency Electronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

SMX (Security Matters) Public has a beta of -2.95, suggesting that its share price is 395% less volatile than the S&P 500. Comparatively, Frequency Electronics has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for SMX (Security Matters) Public and Frequency Electronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMX (Security Matters) Public	1	0	0	0	1.00
Frequency Electronics	0	1	1	1	3.00

Frequency Electronics has a consensus target price of $43.67, indicating a potential downside of 38.52%. Given Frequency Electronics’ stronger consensus rating and higher possible upside, analysts clearly believe Frequency Electronics is more favorable than SMX (Security Matters) Public.

Summary

Frequency Electronics beats SMX (Security Matters) Public on 9 of the 12 factors compared between the two stocks.

About SMX (Security Matters) Public

SMX (Security Matters) Public Limited Company, through its subsidiaries, engages in the development and commercialization of track and trace technologies for various industries. It owns and commercializes technology to mark various objects, such as solid, liquid, or gas allowing identification, circularity, proof of authenticity, tracking supply chain movements, and quality assurance. The company's technology comprises a chemical-based hidden barcode system, as well as a reader to identify these codes and a blockchain record to store and protect ownership data. It serves brand owners and manufacturers. The company was formerly known as Empatan Public Limited Company and changed its name to SMX (Security Matters) Public Limited Company in February 2023. SMX (Security Matters) Public Limited Company was incorporated in 2022 and is based in Dublin, Ireland.

About Frequency Electronics

Frequency Electronics, Inc., together with its subsidiaries, engages in designing, development, and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military; and provides design and technical support for satellite business. FEI-Zyfer segment offers global positioning system technologies to systems and subsystems for secure communications, both government and commercial, and other locator applications; and engages in sale and support of wireline telecommunications products, including US5G. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.