Critical Survey: Iveda Solutions (OTCMKTS:IVDA) and Napco Security Technologies (NASDAQ:NSSC)

Iveda Solutions (OTCMKTS:IVDA) and Napco Security Technologies (NASDAQ:NSSC) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Iveda Solutions and Napco Security Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iveda Solutions	0	0	0	0	N/A
Napco Security Technologies	0	2	5	0	2.71

Napco Security Technologies has a consensus price target of $55.29, suggesting a potential upside of 36.78%. Given Napco Security Technologies’ higher probable upside, analysts clearly believe Napco Security Technologies is more favorable than Iveda Solutions.

Profitability

This table compares Iveda Solutions and Napco Security Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iveda Solutions	-35.70%	-36.68%	-27.45%
Napco Security Technologies	26.38%	30.51%	26.05%

Institutional and Insider Ownership

4.3% of Iveda Solutions shares are held by institutional investors. Comparatively, 85.1% of Napco Security Technologies shares are held by institutional investors. 10.4% of Iveda Solutions shares are held by insiders. Comparatively, 11.5% of Napco Security Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Iveda Solutions has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Napco Security Technologies has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.

Earnings & Valuation

This table compares Iveda Solutions and Napco Security Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iveda Solutions	$3.78 million	6.59	-$3.35 million	($0.24)	-6.38
Napco Security Technologies	$188.82 million	7.88	$49.82 million	$1.26	32.08

Napco Security Technologies has higher revenue and earnings than Iveda Solutions. Iveda Solutions is trading at a lower price-to-earnings ratio than Napco Security Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Napco Security Technologies beats Iveda Solutions on 13 of the 13 factors compared between the two stocks.

About Iveda Solutions

Iveda Solutions, Inc. provides artificial intelligence (AI) and digital transformation technologies in the United States, Egypt, and Taiwan. The company offers IvedaAI, a deep-learning video analytics software; IvedaPinpoint, a solution that manages Bluetooth trackers and sensors, and displays them on a map for exact location; and Sentir Video, a video surveillance solution for various kinds of applications. It also provides Cerebro IoT Platform, a software technology platform that integrates a multitude of disparate systems for central access and management of applications, subsystems, and devices; and IvedaSPS, a smart power solution utilizing in Cerebro IoT platform. In addition, the company offers Utilus smart pole solution that consists of power and Internet with a communication network for the access and management of sensors and devices. It serves airports, commercial buildings, government customers, data centers, shopping centers, hotels, banks, and safe city projects. Iveda Solutions, Inc. was founded in 2003 and is based in Mesa, Arizona.

About Napco Security Technologies

Napco Security Technologies, Inc. develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company’s alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.