Head to Head Contrast: Hitek Global (NASDAQ:HKIT) vs. FalconStor Software (OTCMKTS:FALC)

Hitek Global (NASDAQ:HKIT) and FalconStor Software (OTCMKTS:FALC) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Profitability

This table compares Hitek Global and FalconStor Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hitek Global	N/A	N/A	N/A
FalconStor Software	14.90%	-9.90%	15.87%

Risk and Volatility

Hitek Global has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500. Comparatively, FalconStor Software has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500.

Insider & Institutional Ownership

1.2% of Hitek Global shares are held by institutional investors. Comparatively, 9.5% of FalconStor Software shares are held by institutional investors. 52.8% of FalconStor Software shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Hitek Global and FalconStor Software, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hitek Global	0	0	0	0	N/A
FalconStor Software	0	0	0	0	N/A

Earnings & Valuation

This table compares Hitek Global and FalconStor Software”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hitek Global	$4.56 million	4.41	$1.05 million	N/A	N/A
FalconStor Software	$11.60 million	0.91	$980,000.00	($0.06)	-24.67

Hitek Global has higher earnings, but lower revenue than FalconStor Software.

Summary

FalconStor Software beats Hitek Global on 6 of the 9 factors compared between the two stocks.

About Hitek Global

Hitek Global Inc. provides information technology (IT) consulting and solutions to small and medium businesses in various industry sectors in China. It offers anti-counterfeiting tax control system (ACTCS) tax devices, including golden tax disk and printers, ACTCS services, and IT services; and sells software and hardware to large businesses, such as laptops, printers, desktop computers, and related accessories, as well as Internet servers, cameras, and monitors. The company was founded in 1996 and is headquartered in Xiamen, China.

About FalconStor Software

FalconStor Software, Inc., a storage software company, enables enterprise customers and managed service providers to secure, migrate, and protect their data worldwide. It offers FalconStor Virtual Tape Library, a software that emulates and replaces cumbersome physical tape libraries for archive related data preservation without being replacing their enterprise backup and archive software and associated processes; FalconStor StorSafe, a long-term archive data management software; FalconStor Continuous Data Protector delivers instant data availability, and reliable recovery; and FalconStor Network Storage Server for data storage virtualization and business continuity in heterogeneous environments. The company also provides FalconStor StorSigh, a long-term archive and business continuity driven data replication from one centralized management point; FalconStor RecoverTrac Disaster Recovery Technology that streamlines the implementation, testing, and execution of disaster recovery operations; and FalconStor MicroScanTM Technology, which minimizes the amount of data transferred during replication by eliminating inefficiencies at the application and file system layer. It sells its products through authorized partners, value-added resellers, solution providers, system integrators, direct market resellers, distributors, managed service providers, cloud service providers, and original equipment manufacturers, as well as directly to customers. The company was incorporated in 1994 and is headquartered in Austin, Texas.