Reviewing Telkonet (OTCMKTS:TKOI) & Vuzix (NASDAQ:VUZI)

Telkonet (OTCMKTS:TKOI) and Vuzix (NASDAQ:VUZI) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Insider & Institutional Ownership

35.9% of Vuzix shares are owned by institutional investors. 55.3% of Telkonet shares are owned by company insiders. Comparatively, 8.3% of Vuzix shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Telkonet and Vuzix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telkonet	0	0	0	0	0.00
Vuzix	0	0	1	0	3.00

Vuzix has a consensus target price of $2.00, indicating a potential upside of 3.09%. Given Vuzix’s stronger consensus rating and higher probable upside, analysts plainly believe Vuzix is more favorable than Telkonet.

Profitability

This table compares Telkonet and Vuzix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telkonet	N/A	N/A	N/A
Vuzix	-1,352.74%	-198.84%	-185.84%

Earnings and Valuation

This table compares Telkonet and Vuzix”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telkonet	$8.90 million	0.13	-$1.19 million	N/A	N/A
Vuzix	$5.76 million	25.68	-$73.54 million	($1.03)	-1.88

Telkonet has higher revenue and earnings than Vuzix.

Risk and Volatility

Telkonet has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, Vuzix has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

About Telkonet

Telkonet, Inc. provides EcoSmart and Rhapsody platforms of intelligent automation solutions for the Internet of Things in the United States. Its platforms provide savings, management reporting, analytics, and virtual engineering of a customer's portfolio and/or property's room-by-room energy consumption. The company offers EcoSmart product suite, including EcoInput, a lighting controller installed directly in line with existing light switches; EcoTouch Thermostat, a touch capacitive thermostat interface; EcoInsight Thermostat, a programmable and controllable wired thermostat; EcoAir Thermostat, a wireless thermostat; EcoSource Controller, a remote HVAC control device; EcoSmart VRF controllers; EcoConnect Bridge, an Ethernet to Zigbee bridge; EcoCommander Gateway, a network-edge gateway server; EcoSense Occupancy Sensor, a remote occupancy sensor; EcoSwitch Light Switch, an energy management product; EcoGuard Outlet, an EcoSmart control; and EcoContact Door & Window Sensor, a remote wireless door/window contact solution. It also provides EcoCentral, a solution for intelligent automation and energy management; EcoCare professional support services; and Rhapsody Platform focuses on utilizing WIFI and Bluetooth Low Energy for mobile app-based setup and configuration. The company serves the hospitality, educational, governmental, healthcare, multiple dwelling units, and other commercial markets. Telkonet, Inc. was founded in 1977 and is headquartered in Waukesha, Wisconsin.

About Vuzix

Vuzix Corporation designs, manufactures, and markets smart glasses and augmented reality (AR) technologies and products for the enterprise, medical, defense, and consumer markets. The company’s products include head-mounted smart personal display and wearable computing devices that offer users a portable viewing experience, provide solutions for mobility, wearable displays, and augmented reality, as well as original equipment manufacturer waveguide optical components and display engines. It also provides certified ERP SaaS logistics solution to support hand-held mobile phones and scanners used in logistics, warehousing, and manufacturing applications. It holds approximately 375 patents and patents pending and various IP licenses in the fields of optics, head-mounted displays, and augmented reality Video Eyewear field. It sells its products through resellers, distributors, direct to commercial customers, and online stores, as well as various Vuzix operated web stores in North America, Europe, the Asia-Pacific, and internationally. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in September 2007. Vuzix Corporation was incorporated in 1997 and is headquartered in West Henrietta, New York.