SoundThinking (NASDAQ:SSTI – Get Free Report) and Wrap Technologies (NASDAQ:WRAP – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
60.7% of SoundThinking shares are owned by institutional investors. Comparatively, 8.8% of Wrap Technologies shares are owned by institutional investors. 10.4% of SoundThinking shares are owned by company insiders. Comparatively, 33.3% of Wrap Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares SoundThinking and Wrap Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundThinking | $104.13 million | 1.04 | -$9.42 million | ($1.16) | -7.23 |
| Wrap Technologies | $4.67 million | 12.65 | -$10.34 million | ($0.30) | -3.53 |
SoundThinking has higher revenue and earnings than Wrap Technologies. SoundThinking is trading at a lower price-to-earnings ratio than Wrap Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for SoundThinking and Wrap Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundThinking | 2 | 2 | 3 | 0 | 2.14 |
| Wrap Technologies | 1 | 0 | 0 | 0 | 1.00 |
SoundThinking presently has a consensus price target of $14.00, suggesting a potential upside of 66.87%. Given SoundThinking’s stronger consensus rating and higher probable upside, equities analysts clearly believe SoundThinking is more favorable than Wrap Technologies.
Risk and Volatility
SoundThinking has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Wrap Technologies has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.
Profitability
This table compares SoundThinking and Wrap Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoundThinking | -14.95% | -20.76% | -11.26% |
| Wrap Technologies | -270.03% | -115.68% | -90.83% |
Summary
SoundThinking beats Wrap Technologies on 9 of the 14 factors compared between the two stocks.
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 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.
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