Critical Survey: WISeKey International (NASDAQ:WKEY) & ICTS International (OTCMKTS:ICTSF)

ICTS International (OTCMKTS:ICTSF) and WISeKey International (NASDAQ:WKEY) are both small-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Valuation and Earnings

This table compares ICTS International and WISeKey International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ICTS International	$483.31 million	0.34	-$4.23 million	N/A	N/A
WISeKey International	$11.88 million	5.13	-$13.45 million	N/A	N/A

ICTS International has higher revenue and earnings than WISeKey International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ICTS International	N/A	N/A	N/A
WISeKey International	N/A	N/A	N/A

Institutional & Insider Ownership

0.3% of WISeKey International shares are owned by institutional investors. 62.4% of ICTS International shares are owned by insiders. Comparatively, 33.5% of WISeKey International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for ICTS International and WISeKey International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ICTS International	0	0	0	0	0.00
WISeKey International	1	0	2	0	2.33

WISeKey International has a consensus price target of $10.50, suggesting a potential upside of 40.94%. Given WISeKey International’s stronger consensus rating and higher possible upside, analysts clearly believe WISeKey International is more favorable than ICTS International.

Risk and Volatility

ICTS International has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, WISeKey International has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Summary

WISeKey International beats ICTS International on 6 of the 9 factors compared between the two stocks.

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.

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.