Contrasting Wrap Technologies (NASDAQ:WRAP) and Guardforce AI (NASDAQ:GFAI)

Wrap Technologies (NASDAQ:WRAP) and Guardforce AI (NASDAQ:GFAI) 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, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Volatility and Risk

Wrap Technologies has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Guardforce AI has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500.

Profitability

This table compares Wrap Technologies and Guardforce AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wrap Technologies	-285.43%	-175.85%	-54.67%
Guardforce AI	N/A	N/A	N/A

Earnings & Valuation

This table compares Wrap Technologies and Guardforce AI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wrap Technologies	$4.50 million	24.51	-$5.88 million	($0.20)	-10.85
Guardforce AI	$36.35 million	0.54	-$5.86 million	N/A	N/A

Guardforce AI has higher revenue and earnings than Wrap Technologies.

Institutional and Insider Ownership

8.8% of Wrap Technologies shares are owned by institutional investors. Comparatively, 2.0% of Guardforce AI shares are owned by institutional investors. 18.6% of Wrap Technologies shares are owned by insiders. Comparatively, 76.7% of Guardforce AI shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Wrap Technologies and Guardforce AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wrap Technologies	0	0	0	0	0.00
Guardforce AI	0	0	1	0	3.00

Guardforce AI has a consensus target price of $4.50, suggesting a potential upside of 309.09%. Given Guardforce AI’s stronger consensus rating and higher possible upside, analysts plainly believe Guardforce AI is more favorable than Wrap Technologies.

Summary

Guardforce AI beats Wrap Technologies on 10 of the 12 factors compared between the two stocks.

About Wrap Technologies

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company's flagship product is BolaWrap 150, a handheld remote restraint device that discharges a seven and a half-foot Kevlar tether, entangling an individual from a range of 10-25 feet. It also offers virtual reality training system, a law enforcement 3D training system employing immersive computer graphics VR with proprietary software-enabled content. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 2007 and is based in Tempe, Arizona.

About Guardforce AI

Guardforce AI Co., Limited offers cash solutions and cash handling services in Thailand. The company operates through four segments: Secured Logistics Business, General Security Solutions, Robotics Solution Business, and Information Security Business. Its services include cash-in-transit, vehicles to banks, ATM management, cash center operations, cash processing, coin processing, consolidate cash center, and cheque center services, as well as cash deposit machine solutions, such as cash deposit management and express cash services. The company also sells and rents robots; and sells and installs Rapid7 software, as well as provision of integrated alarm security system installation, PCI ASV scan, and penetration testing services. Its customers include local commercial banks, chain retailers, coin manufacturing mints, and government authorities. The company was founded in 1982 and is based in Singapore.