Financial Analysis: Evolv Technologies (NASDAQ:EVLV) and SecureAlert (OTCMKTS:TRCK)

Evolv Technologies (NASDAQ:EVLV) and SecureAlert (OTCMKTS:TRCK) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Evolv Technologies and SecureAlert, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolv Technologies	1	0	4	1	2.83
SecureAlert	0	0	0	0	0.00

Evolv Technologies presently has a consensus target price of $8.88, suggesting a potential upside of 1.31%. Given Evolv Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Evolv Technologies is more favorable than SecureAlert.

Earnings and Valuation

This table compares Evolv Technologies and SecureAlert”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolv Technologies	$103.86 million	14.50	-$54.02 million	($0.55)	-15.93
SecureAlert	$36.89 million	0.09	-$3.08 million	($0.12)	-2.29

SecureAlert has lower revenue, but higher earnings than Evolv Technologies. Evolv Technologies is trading at a lower price-to-earnings ratio than SecureAlert, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Evolv Technologies and SecureAlert’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolv Technologies	-73.04%	-76.80%	-32.65%
SecureAlert	-3.91%	-11.46%	3.48%

Institutional and Insider Ownership

66.7% of Evolv Technologies shares are held by institutional investors. Comparatively, 5.8% of SecureAlert shares are held by institutional investors. 11.3% of Evolv Technologies shares are held by insiders. Comparatively, 11.1% of SecureAlert shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Evolv Technologies beats SecureAlert on 8 of the 14 factors compared between the two stocks.

About Evolv Technologies

Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based weapons detection for security screening in the United States and internationally. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives; and Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics. The company was founded in 2013 and is headquartered in Waltham, Massachusetts.

About SecureAlert

Track Group, Inc., together with its subsidiaries, designs, manufactures, and markets location tracking devices in the United States, Latin America, and internationally. The company's products include ReliAlert XC4, a GPS monitoring device; and ReliAlert XC 3, which enables agencies to track offender movements and communicate directly with offenders in real-time through on-board two/three-way voice communication technology. It also provides IntelliTrack, a secure state of the art device-agnostic platform; IntelliTrack Mobile, a mobile application of the Intellitrack software is available for Android and iOS devices; TrackerPAL, a cloud-based monitoring system; TrackerPAL Mobile, a mobile application of the TrackerPAL software for Android and iOS devices; data analytics services; and BACtrack, a smartphone-based remote alcohol monitoring system. In addition, the company offers Empower smartphone application that provides victim and survivor support by creating a mobile geo-zone around a survivor of domestic abuse and communicates with the offender's tracking device; Socrates 360, a platform that offers various content and service; SecureCuff steel bands; and RF Beacon, a self-contained and short-range transmitting station that provides a radio frequency signal communicating with assigned offender GPS devices, as well as product support services. Further, the company develops and sells various related software, services, accessories, networking solutions, and monitoring applications. The company was formerly known as SecureAlert, Inc. and changed its name to Track Group, Inc. in May 2015. Track Group, Inc. was incorporated in 1995 and is headquartered in Naperville, Illinois.