Rekor Systems (NASDAQ:REKR – Get Free Report) and Agora (NASDAQ:API – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.
Profitability
This table compares Rekor Systems and Agora’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rekor Systems | -43.84% | -59.05% | -27.37% |
| Agora | 7.23% | 1.96% | 1.52% |
Insider and Institutional Ownership
45.7% of Rekor Systems shares are owned by institutional investors. Comparatively, 40.4% of Agora shares are owned by institutional investors. 3.2% of Rekor Systems shares are owned by company insiders. Comparatively, 14.6% of Agora shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rekor Systems | $49.82 million | 0.88 | -$31.46 million | ($0.16) | -1.99 |
| Agora | $151.69 million | 2.55 | $9.53 million | $0.11 | 40.27 |
Agora has higher revenue and earnings than Rekor Systems. Rekor Systems is trading at a lower price-to-earnings ratio than Agora, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Rekor Systems has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500. Comparatively, Agora has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Rekor Systems and Agora, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rekor Systems | 1 | 0 | 0 | 0 | 1.00 |
| Agora | 0 | 2 | 1 | 0 | 2.33 |
Agora has a consensus price target of $6.80, suggesting a potential upside of 53.50%. Given Agora’s stronger consensus rating and higher probable upside, analysts plainly believe Agora is more favorable than Rekor Systems.
Summary
Agora beats Rekor Systems on 12 of the 14 factors compared between the two stocks.
About Rekor Systems
Rekor Systems, Inc., a technology company, provides infrastructure solutions for transportation, public safety, and urban mobility markets in the United States and internationally. The company's platforms include Rekor One, an AI-powered roadway intelligence platform; Rekor Command, a comprehensive cross-agency platform that offers various applications for traffic management centers, freeway service patrol, first responders, and maintenance crews; Rekor Discover, a platform that ingests data from its hardware and automates comprehensive analytics and actionable insights about the movement of objects across the roadway; and Rekor Scout platform, which automates previously manual processes with collaborative solutions that keep all stakeholders apprised of developing situations and accelerate reaction times to incidents and offenders. It also offers Rekor AutoNotice, a cloud-based financial management application that delivers a turnkey information and citation management solution for cities, states, and municipalities for primary and secondary offenses; and Rekor CarCheck, which allows its AI based vehicle and license plate recognition technology to be accessed for a range of commercial applications. In addition, the company offers Rekor Edge Max System, a fixed traffic data collection system that captures and transforms roadway data into holistic traffic insights; Rekor Edge Pro, a vehicle recognition solution that is used on a standalone basis or integrated into a network; and Rekor Edge Flex, a portable data collection system. Further, it provides traffic services, including traditional traffic studies, which delivers data and insights for planning and management of roadway infrastructure and commercial initiatives; innovative AI-driven traffic studies for traffic management; and traffic engineering services. The company was incorporated in 2017 and is headquartered in Columbia, Maryland.
About Agora
Agora, Inc. operates in real-time engagement technology business in the People's Republic of China, the United States, and internationally. The company offers real-time engagement platform-as-a-services providing developers with application programming interfaces to embed real-time voice, video, interactive live-streaming, chat, whiteboard, and artificial intelligence capabilities into their applications. It also provides video and voice calling, interactive live and broadcast streaming, chat, signaling, and interactive whiteboard products; and extensions, such as analytics, recording, AI noise suppression, 3D spatial audio, real-time transcription, and extensions marketplace. In addition, the company offers Application Platforms, including Flexible Classroom, a low-code application Platform as a Service, which combines video, voice, chat, signaling, whiteboard and recording functionalities into an integrated cloud-based solution for education providers; and App Builder, a no-code application platform, designed for developers with little or no coding experience to build their own applications with video conference and live streaming functionalities. It operates through Agora and Shengwang brands. Agora, Inc. was incorporated in 2013 and is headquartered in Santa Clara, California.
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