Contrasting A2Z Smart Technologies (NASDAQ:AZ) and Palladyne AI (NASDAQ:PDYN)

Palladyne AI (NASDAQ:PDYN) and A2Z Smart Technologies (NASDAQ:AZ) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Institutional and Insider Ownership

26.0% of Palladyne AI shares are owned by institutional investors. Comparatively, 12.6% of A2Z Smart Technologies shares are owned by institutional investors. 12.0% of Palladyne AI shares are owned by company insiders. Comparatively, 28.0% of A2Z Smart Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Palladyne AI and A2Z Smart Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palladyne AI	-893.88%	-62.26%	-44.82%
A2Z Smart Technologies	-118.83%	-6,821.36%	-118.89%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Palladyne AI and A2Z Smart Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palladyne AI	0	0	0	0	N/A
A2Z Smart Technologies	0	0	0	0	N/A

Risk and Volatility

Palladyne AI has a beta of 3.34, meaning that its stock price is 234% more volatile than the S&P 500. Comparatively, A2Z Smart Technologies has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Earnings & Valuation

This table compares Palladyne AI and A2Z Smart Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palladyne AI	$6.15 million	7.84	-$115.59 million	($3.94)	-0.46
A2Z Smart Technologies	$7.14 million	4.99	-$16.06 million	($0.33)	-2.62

A2Z Smart Technologies has higher revenue and earnings than Palladyne AI. A2Z Smart Technologies is trading at a lower price-to-earnings ratio than Palladyne AI, indicating that it is currently the more affordable of the two stocks.

Summary

Palladyne AI beats A2Z Smart Technologies on 6 of the 11 factors compared between the two stocks.

About Palladyne AI

Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training. It serves customers from various industries, such as industrial manufacturing, warehousing and logistics, defense, infrastructure maintenance and repair, energy, aerospace and aviation, and others. The company was formerly known as Sarcos Technology and Robotics Corporation and changed its name to Palladyne AI Corp. in March 2024. Palladyne AI Corp. was founded in 2017 and is headquartered in Salt Lake City, Utah.

About A2Z Smart Technologies

A2Z Smart Technologies Corp., a technology company, focuses on the development and commercialization of retail smart cart solutions for grocery stores and supermarkets in Israel and internationally. The company operates through three segments: Precision Metal Parts, Advanced Engineering, and Smart Carts. It offers Cust2Mate system, which incorporates a smart cart that automatically calculates the value of the customers purchases in their smart cart without having to unload and reload their purchases at a customer checkout point. The company also manufactures and sells precision metal parts; provides retail automation solutions; and develops Fuel Tank Inertia Capsule System technology (FTICS), a vehicle device cover for the military and civilian automotive industry. In addition, it provides maintenance services utilizing the application of advanced engineering capabilities to the military and security markets, as well as develops related products for the civilian and retail markets; container leasing services; and maintenance services for complex electronic systems and products. It serves its products to grocery stores, hardware stores, household essentials, do it yourself (DIY) retailers, discount stores, warehouse stores, convenience stores, drug stores, duty free shops, and similar outlets. The company is headquartered in Vancouver, Canada.