BIO-key International (NASDAQ:BKYI – Get Free Report) and Sigma Lithium (NASDAQ:SGML – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Insider and Institutional Ownership
26.5% of BIO-key International shares are owned by institutional investors. Comparatively, 64.9% of Sigma Lithium shares are owned by institutional investors. 3.7% of BIO-key International shares are owned by insiders. Comparatively, 48.6% of Sigma Lithium shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares BIO-key International and Sigma Lithium”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
BIO-key International | $6.93 million | 0.63 | -$4.30 million | ($2.08) | -0.36 |
Sigma Lithium | $152.36 million | 3.72 | -$51.07 million | ($0.37) | -13.76 |
BIO-key International has higher earnings, but lower revenue than Sigma Lithium. Sigma Lithium is trading at a lower price-to-earnings ratio than BIO-key International, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
BIO-key International has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Sigma Lithium has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for BIO-key International and Sigma Lithium, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
BIO-key International | 0 | 0 | 0 | 0 | 0.00 |
Sigma Lithium | 0 | 0 | 2 | 0 | 3.00 |
Sigma Lithium has a consensus target price of $18.00, indicating a potential upside of 253.63%. Given Sigma Lithium’s stronger consensus rating and higher possible upside, analysts plainly believe Sigma Lithium is more favorable than BIO-key International.
Profitability
This table compares BIO-key International and Sigma Lithium’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
BIO-key International | -74.11% | -181.57% | -60.78% |
Sigma Lithium | -24.36% | -35.85% | -10.76% |
Summary
Sigma Lithium beats BIO-key International on 11 of the 14 factors compared between the two stocks.
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.
About Sigma Lithium
Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.
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