Analyzing NAPCO Security Technologies (NASDAQ:NSSC) and WISeKey International (NASDAQ:WKEY)

NAPCO Security Technologies (NASDAQ:NSSC) and WISeKey International (NASDAQ:WKEY) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Risk and Volatility

NAPCO Security Technologies has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, WISeKey International has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Earnings and Valuation

This table compares NAPCO Security Technologies and WISeKey International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NAPCO Security Technologies	$188.82 million	5.71	$49.82 million	$1.22	24.78
WISeKey International	$11.88 million	3.62	-$13.45 million	N/A	N/A

NAPCO Security Technologies has higher revenue and earnings than WISeKey International.

Insider and Institutional Ownership

85.1% of NAPCO Security Technologies shares are owned by institutional investors. Comparatively, 0.3% of WISeKey International shares are owned by institutional investors. 5.2% of NAPCO Security Technologies shares are owned by insiders. Comparatively, 33.5% of WISeKey International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares NAPCO Security Technologies and WISeKey International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NAPCO Security Technologies	25.00%	26.14%	22.34%
WISeKey International	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for NAPCO Security Technologies and WISeKey International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NAPCO Security Technologies	0	4	3	0	2.43
WISeKey International	0	0	1	0	3.00

NAPCO Security Technologies currently has a consensus target price of $30.83, indicating a potential upside of 2.00%. WISeKey International has a consensus target price of $4.00, indicating a potential downside of 24.10%. Given NAPCO Security Technologies’ higher probable upside, equities research analysts clearly believe NAPCO Security Technologies is more favorable than WISeKey International.

Summary

NAPCO Security Technologies beats WISeKey International on 9 of the 12 factors compared between the two stocks.

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.

About WISeKey International

WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates in two segments, IoT and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, it engages in financing, sales, and distribution activities; and sells semiconductors secure chips. The company was founded in 1999 and is headquartered in Zug, Switzerland.