Head to Head Analysis: Vuzix (NASDAQ:VUZI) and Telkonet (OTCMKTS:TKOI)

Vuzix (NASDAQ:VUZI) and Telkonet (OTCMKTS:TKOI) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

35.9% of Vuzix shares are held by institutional investors. 8.3% of Vuzix shares are held by company insiders. Comparatively, 55.3% of Telkonet shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Vuzix and Telkonet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vuzix	$5.76 million	30.05	-$73.54 million	($1.03)	-2.20
Telkonet	$8.90 million	0.15	-$1.19 million	N/A	N/A

Telkonet has higher revenue and earnings than Vuzix.

Risk and Volatility

Vuzix has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Telkonet has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500.

Profitability

This table compares Vuzix and Telkonet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vuzix	-1,352.74%	-198.84%	-185.84%
Telkonet	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Vuzix and Telkonet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vuzix	0	0	1	0	3.00
Telkonet	0	0	0	0	0.00

Vuzix presently has a consensus price target of $2.00, suggesting a potential downside of 11.89%. Given Vuzix’s stronger consensus rating and higher probable upside, research analysts plainly believe Vuzix is more favorable than Telkonet.

About Vuzix

Vuzix Corporation designs, manufactures, and markets smart glasses and augmented reality (AR) technologies and products for the enterprise, medical, defense, and consumer markets. The company’s products include head-mounted smart personal display and wearable computing devices that offer users a portable viewing experience, provide solutions for mobility, wearable displays, and augmented reality, as well as original equipment manufacturer waveguide optical components and display engines. It also provides certified ERP SaaS logistics solution to support hand-held mobile phones and scanners used in logistics, warehousing, and manufacturing applications. It holds approximately 375 patents and patents pending and various IP licenses in the fields of optics, head-mounted displays, and augmented reality Video Eyewear field. It sells its products through resellers, distributors, direct to commercial customers, and online stores, as well as various Vuzix operated web stores in North America, Europe, the Asia-Pacific, and internationally. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in September 2007. Vuzix Corporation was incorporated in 1997 and is headquartered in West Henrietta, New York.

About Telkonet

Telkonet, Inc. provides EcoSmart and Rhapsody platforms of intelligent automation solutions for the Internet of Things in the United States. Its platforms provide savings, management reporting, analytics, and virtual engineering of a customer's portfolio and/or property's room-by-room energy consumption. The company offers EcoSmart product suite, including EcoInput, a lighting controller installed directly in line with existing light switches; EcoTouch Thermostat, a touch capacitive thermostat interface; EcoInsight Thermostat, a programmable and controllable wired thermostat; EcoAir Thermostat, a wireless thermostat; EcoSource Controller, a remote HVAC control device; EcoSmart VRF controllers; EcoConnect Bridge, an Ethernet to Zigbee bridge; EcoCommander Gateway, a network-edge gateway server; EcoSense Occupancy Sensor, a remote occupancy sensor; EcoSwitch Light Switch, an energy management product; EcoGuard Outlet, an EcoSmart control; and EcoContact Door & Window Sensor, a remote wireless door/window contact solution. It also provides EcoCentral, a solution for intelligent automation and energy management; EcoCare professional support services; and Rhapsody Platform focuses on utilizing WIFI and Bluetooth Low Energy for mobile app-based setup and configuration. The company serves the hospitality, educational, governmental, healthcare, multiple dwelling units, and other commercial markets. Telkonet, Inc. was founded in 1977 and is headquartered in Waukesha, Wisconsin.