Eastern (NASDAQ:EML – Get Free Report) and Digital Ally Inc./NV (NASDAQ:DGLY – Get Free Report) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
77.0% of Eastern shares are held by institutional investors. Comparatively, 4.2% of Digital Ally Inc./NV shares are held by institutional investors. 17.0% of Eastern shares are held by insiders. Comparatively, 0.4% of Digital Ally Inc./NV 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.
Earnings and Valuation
This table compares Eastern and Digital Ally Inc./NV”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eastern | $272.75 million | 0.56 | -$8.53 million | ($1.32) | -18.92 |
| Digital Ally Inc./NV | $19.65 million | 0.16 | -$19.84 million | ($5,042.21) | 0.00 |
Eastern has higher revenue and earnings than Digital Ally Inc./NV. Eastern is trading at a lower price-to-earnings ratio than Digital Ally Inc./NV, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Eastern and Digital Ally Inc./NV, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eastern | 0 | 0 | 0 | 0 | 0.00 |
| Digital Ally Inc./NV | 0 | 0 | 0 | 1 | 4.00 |
Risk and Volatility
Eastern has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Digital Ally Inc./NV has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.
Profitability
This table compares Eastern and Digital Ally Inc./NV’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eastern | -3.06% | 10.44% | 5.38% |
| Digital Ally Inc./NV | -59.69% | -538.11% | -38.24% |
Summary
Eastern beats Digital Ally Inc./NV on 10 of the 13 factors compared between the two stocks.
About Eastern
The Eastern Company designs, manufactures, and sells engineered solutions to industrial markets in the United States and internationally. The company offers turnkey returnable packaging solutions, which are used in the assembly processes of vehicles, aircraft, and durable goods, as well as in production processes of plastic packaging products, packaged consumer goods, and pharmaceuticals; designs and manufactures blow mold tools and injection blow mold tooling products, and 2-step stretch blow molds and related components for the stretch blow molding industry; and supplies blow molds and change parts to the food, beverage, healthcare, and chemical industries. It also provides rotary latches, compression latches, draw latches, hinges, camlocks, key switches, padlocks, and handles; and development and program management services for custom electromechanical and mechanical systems for original equipment manufacturers (OEMs) and customer applications. In addition, the company designs and manufactures proprietary vision technology for OEMs and aftermarket applications, as well as offers aftermarket components to the heavy- and medium-duty truck, motorhome, and bus markets. The Eastern Company was founded in 1858 and is based in Shelton, Connecticut.
About Digital Ally Inc./NV
Digital Ally, Inc. produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States. It operates through three segments: Video Solutions, Revenue Cycle Management, and Entertainment. The company offers in-car digital video mirror systems for law enforcement; in-car digital video event recorder systems for commercial fleets; a suite of data management web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information; body-worn digital video systems for law enforcement and private security; and VuLink ecosystem that provides intuitive auto-activation functionality as well as coordination between multiple recording devices. It also provides EVO Web, a web-based software that enables police departments and security agencies to manage digital video evidence quickly and easily; FleetVU Manager, a web-based software for commercial fleet tracking and monitoring; ThermoVu, a non-contact temperature-screening instrument that measures temperature through the wrist and controls entry to facilities when temperature measurements exceed pre-determined parameters; and Shield disinfectants and cleansers, as well as other personal protective equipment and supplies, such as masks, gloves, disposable wipes, and electrostatic sprayer to health care workers and other consumers. In addition, the company offers working capital and back-office services, including insurance and benefit verification, medical treatment documentation and coding, and collections to healthcare organizations; and operates TicketSmarter.com, an online ticketing marketplace for ticket sales, partnerships, and ticket resale services for live events, including concerts, sporting events, theatres, and performing arts. Digital Ally, Inc. was founded in 2004 and is headquartered in Lenexa, Kansas.
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