Comparing BIO-key International (NASDAQ:BKYI) and Red Cat (NASDAQ:RCAT)

BIO-key International (NASDAQ:BKYI) and Red Cat (NASDAQ:RCAT) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for BIO-key International and Red Cat, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BIO-key International	0	0	0	0	N/A
Red Cat	0	0	1	0	3.00

Red Cat has a consensus target price of $4.00, suggesting a potential upside of 16.96%. Given Red Cat’s higher probable upside, analysts plainly believe Red Cat is more favorable than BIO-key International.

Volatility & Risk

BIO-key International has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Red Cat has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500.

Earnings and Valuation

This table compares BIO-key International and Red Cat”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BIO-key International	$6.96 million	0.35	-$8.52 million	N/A	N/A
Red Cat	$17.84 million	14.46	-$24.05 million	($0.46)	-7.43

BIO-key International has higher earnings, but lower revenue than Red Cat.

Insider & Institutional Ownership

26.5% of BIO-key International shares are held by institutional investors. Comparatively, 38.0% of Red Cat shares are held by institutional investors. 5.8% of BIO-key International shares are held by company insiders. Comparatively, 21.5% of Red Cat shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares BIO-key International and Red Cat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BIO-key International	-93.18%	-673.82%	-111.89%
Red Cat	-162.50%	-66.19%	-58.99%

Summary

Red Cat beats BIO-key International on 8 of the 11 factors compared between the two stocks.

About BIO-key International

BIO-key International, Inc. develops and markets fingerprint identification biometric technology and software solutions, and enterprise-ready identity access management solutions for commercial, government, and education customers in the United States and internationally. The company offers BIO-key PortalGuard and PortalGuard IDaaS solutions, a customer-controlled and neutral-by-design cloud-based identity platform that allows customers to integrate with any cloud or on-premises SaaS application, as well as windows device authentication through IAM platform. Its solutions enable its customers to secure their workforces and student populations; and make their partner networks more collaborative. In addition, it provides BIO-key VST and WEB-key products; and Civil and Large-Scale ID Infrastructure solutions that develops finger-based biometric technology. Further, it offers finger scanners for enterprise and consumer markets under SideSwipe, EcoID, and SidePass brand names. The company was formerly known as SAC Technologies and changed its name to BIO-key International, Inc. in 2002. BIO-key International, Inc. was founded in 1993 and is headquartered in Wall, New Jersey.

About Red Cat

Red Cat Holdings, Inc. engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment. Red Cat Holdings, Inc. is based in San Juan, Puerto Rico.