Critical Analysis: ImageWare Systems (OTCMKTS:IWSY) & Intuit (NASDAQ:INTU)

ImageWare Systems (OTCMKTS:IWSY) and Intuit (NASDAQ:INTU) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Analyst Recommendations

This is a summary of recent recommendations for ImageWare Systems and Intuit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ImageWare Systems	0	0	0	0	0.00
Intuit	1	2	20	1	2.88

Intuit has a consensus price target of $806.27, indicating a potential downside of 0.14%. Given ImageWare Systems’ higher probable upside, equities analysts clearly believe ImageWare Systems is more favorable than Intuit.

Valuation & Earnings

This table compares ImageWare Systems and Intuit”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ImageWare Systems	N/A	N/A	N/A	N/A	N/A
Intuit	$16.29 billion	13.83	$2.96 billion	$12.32	65.53

Intuit has higher revenue and earnings than ImageWare Systems.

Insider and Institutional Ownership

2.2% of ImageWare Systems shares are owned by institutional investors. Comparatively, 83.7% of Intuit shares are owned by institutional investors. 37.7% of ImageWare Systems shares are owned by company insiders. Comparatively, 2.7% of Intuit shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares ImageWare Systems and Intuit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ImageWare Systems	N/A	N/A	N/A
Intuit	19.07%	21.46%	11.99%

Risk & Volatility

ImageWare Systems has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Intuit has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Summary

Intuit beats ImageWare Systems on 8 of the 11 factors compared between the two stocks.

About ImageWare Systems

ImageWare Systems, Inc. operates as a biometric solution provider in the United States and internationally. It offers Imageware Biometric Engine, a biometric identity and authentication database built for multi-biometric enrollment, management, and authentication. The company also provides Imageware Proof that enables an entity to prove user identity from their biometrics, government issued ID, and credit bureau data; Imageware Capture that enables the capture of biographic and biometric details, such as face, fingerprint, palm print, and iris, as well as scars, marks, and tattoos; Imageware Identify, which enables a user to identify others from their biometrics; and Imageware Investigate that enables an officer to create digital lineups. In addition, it offers Imageware Credential that enables a user to design, build, and print badges for access control systems, which includes tickets, smart badges, wristbands, personal identity verification cards, and others; Imageware Digital ID, a decentralized identity service that enables self-sovereign identity underpinned by blockchain technology tied to biometrics; and Imageware Authenticate, which enables users to leverage multimodal biometrics hosted in a central server or cloud to log in to services and applications from a device. Further, the company provides Law Enforcement 2.0 solution which enables state, local, and federal agencies to capture, archive, search, retrieve, and share digital images, fingerprints, and other biometrics, as well as criminal history records on a stand-alone, networked, wireless or browser-based platform. It serves airports and seaports, education, financial, government, healthcare, and law enforcement industries. The company was incorporated in 1987 and is headquartered in San Diego, California.

About Intuit

Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax. The Small Business & Self-Employed segment provides QuickBooks services, that includes financial and business management online services and desktop software, payroll solutions, time tracking, merchant payment processing solutions, and financing for small businesses; and Mailchimp services, such as e-commerce, marketing automation, and customer relationship management. This segment also offers QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; and QuickBooks Self-Employed solution; payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; and financial supplies and financing for small businesses, as well as electronic filing of federal and state income tax returns. The Consumer segment provides TurboTax income tax preparation products and services. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProTax segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, California.