Comparing Rekor Systems (NASDAQ:REKR) and zSpace (NASDAQ:ZSPC)

zSpace (NASDAQ:ZSPC) and Rekor Systems (NASDAQ:REKR) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Valuation & Earnings

This table compares zSpace and Rekor Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
zSpace	$38.10 million	0.12	-$20.82 million	($0.79)	-0.18
Rekor Systems	$46.03 million	2.40	-$61.41 million	($0.42)	-2.08

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

Volatility & Risk

zSpace has a beta of -0.25, suggesting that its share price is 125% less volatile than the S&P 500. Comparatively, Rekor Systems has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for zSpace and Rekor Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
zSpace	1	1	2	0	2.25
Rekor Systems	1	0	1	0	2.00

zSpace presently has a consensus target price of $6.00, suggesting a potential upside of 4,119.41%. Given zSpace’s stronger consensus rating and higher possible upside, equities analysts clearly believe zSpace is more favorable than Rekor Systems.

Profitability

This table compares zSpace and Rekor Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
zSpace	-68.88%	N/A	-177.47%
Rekor Systems	-89.82%	-126.37%	-54.48%

Institutional & Insider Ownership

45.7% of Rekor Systems shares are held by institutional investors. 55.7% of zSpace shares are held by company insiders. Comparatively, 13.1% of Rekor Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

zSpace beats Rekor Systems on 8 of the 14 factors compared between the two stocks.

About zSpace

zSpace Technologies, Inc. is a provider of commercial augmented reality and virtual reality technology principally in the education market. The Company offers differentiated hardware along with learning software modules for K-12 science, technology, engineering, game design and mathematics applications, as well as workforce-oriented career and technical education applications. zSpace Technologies Inc. is based in SAN JOSE, Calif.

About Rekor Systems

Rekor Systems, Inc., a technology company, provides infrastructure solutions for transportation, public safety, and urban mobility markets in the United States and internationally. The company's platforms include Rekor One, an AI-powered roadway intelligence platform; Rekor Command, a comprehensive cross-agency platform that offers various applications for traffic management centers, freeway service patrol, first responders, and maintenance crews; Rekor Discover, a platform that ingests data from its hardware and automates comprehensive analytics and actionable insights about the movement of objects across the roadway; and Rekor Scout platform, which automates previously manual processes with collaborative solutions that keep all stakeholders apprised of developing situations and accelerate reaction times to incidents and offenders. It also offers Rekor AutoNotice, a cloud-based financial management application that delivers a turnkey information and citation management solution for cities, states, and municipalities for primary and secondary offenses; and Rekor CarCheck, which allows its AI based vehicle and license plate recognition technology to be accessed for a range of commercial applications. In addition, the company offers Rekor Edge Max System, a fixed traffic data collection system that captures and transforms roadway data into holistic traffic insights; Rekor Edge Pro, a vehicle recognition solution that is used on a standalone basis or integrated into a network; and Rekor Edge Flex, a portable data collection system. Further, it provides traffic services, including traditional traffic studies, which delivers data and insights for planning and management of roadway infrastructure and commercial initiatives; innovative AI-driven traffic studies for traffic management; and traffic engineering services. The company was incorporated in 2017 and is headquartered in Columbia, Maryland.