Head to Head Comparison: Red Cat (NASDAQ:RCAT) and BIO-key International (NASDAQ:BKYI)

Red Cat (NASDAQ:RCAT) and BIO-key International (NASDAQ:BKYI) 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, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Profitability

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

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

Insider & Institutional Ownership

38.0% of Red Cat shares are owned by institutional investors. Comparatively, 26.5% of BIO-key International shares are owned by institutional investors. 21.5% of Red Cat shares are owned by insiders. Comparatively, 5.8% of BIO-key International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Cat	$18.86 million	12.23	-$24.05 million	($0.46)	-6.65
BIO-key International	$7.76 million	0.32	-$8.52 million	N/A	N/A

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

Analyst Recommendations

This is a breakdown of recent recommendations for Red Cat and BIO-key International, as provided by MarketBeat.

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

Red Cat currently has a consensus price target of $4.00, suggesting a potential upside of 30.72%. Given Red Cat’s higher possible upside, equities research analysts clearly believe Red Cat is more favorable than BIO-key International.

Volatility & Risk

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

Summary

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

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.

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.