Resideo Technologies (NYSE:REZI) vs. WISeKey International (NASDAQ:WKEY) Critical Review

WISeKey International (NASDAQ:WKEY) and Resideo Technologies (NYSE:REZI) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Institutional and Insider Ownership

0.3% of WISeKey International shares are held by institutional investors. Comparatively, 91.7% of Resideo Technologies shares are held by institutional investors. 33.5% of WISeKey International shares are held by company insiders. Comparatively, 1.5% of Resideo Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

WISeKey International has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Resideo Technologies has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for WISeKey International and Resideo Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WISeKey International	1	0	2	0	2.33
Resideo Technologies	1	2	2	0	2.20

WISeKey International currently has a consensus target price of $10.50, indicating a potential upside of 16.15%. Resideo Technologies has a consensus target price of $34.67, indicating a potential downside of 8.57%. Given WISeKey International’s stronger consensus rating and higher possible upside, research analysts plainly believe WISeKey International is more favorable than Resideo Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WISeKey International	N/A	N/A	N/A
Resideo Technologies	-8.85%	14.96%	4.59%

Earnings and Valuation

This table compares WISeKey International and Resideo Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WISeKey International	$11.88 million	6.22	-$13.45 million	N/A	N/A
Resideo Technologies	$6.76 billion	0.84	$116.00 million	($4.68)	-8.10

Resideo Technologies has higher revenue and earnings than WISeKey International.

Summary

Resideo Technologies beats WISeKey International on 6 of the 11 factors compared between the two stocks.

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.

About Resideo Technologies

Resideo Technologies, Inc. develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution. The Products and Solutions segment provides temperature and humidity control, thermal and combustion solutions, water and indoor air quality solutions, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety and fire suppression, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand as well as Resideo, Braukmann, First Alert, and BRK brands. The ADI Global Distribution segment engages in the distribution of security, fire, access control, and video products; and participates in the broader related markets of smart home, power, audio, ProAV, networking, communications, data communications, wire and cable, enterprise connectivity, and structured wiring products. The company sells its products and services through a network of professional contractors, distributors, and original equipment manufacturers, as well as retail and online merchants. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.