Analyzing ScanTech AI Systems (NASDAQ:STAI) and SecureAlert (OTCMKTS:TRCK)

SecureAlert (OTCMKTS:TRCK) and ScanTech AI Systems (NASDAQ:STAI) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares SecureAlert and ScanTech AI Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SecureAlert	-5.35%	-5.94%	1.77%
ScanTech AI Systems	-477.09%	-11.25%	209.23%

Analyst Ratings

This is a breakdown of current ratings and target prices for SecureAlert and ScanTech AI Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SecureAlert	0	0	0	0	0.00
ScanTech AI Systems	1	0	0	0	1.00

Institutional & Insider Ownership

5.8% of SecureAlert shares are owned by institutional investors. Comparatively, 74.0% of ScanTech AI Systems shares are owned by institutional investors. 11.1% of SecureAlert shares are owned by insiders. Comparatively, 2.3% of ScanTech AI Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

SecureAlert has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, ScanTech AI Systems has a beta of -0.49, meaning that its stock price is 149% less volatile than the S&P 500.

Valuation & Earnings

This table compares SecureAlert and ScanTech AI Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SecureAlert	$35.22 million	0.13	-$1.88 million	($0.16)	-2.44
ScanTech AI Systems	$1.88 million	3.93	-$23.07 million	($9.20)	-0.21

SecureAlert has higher revenue and earnings than ScanTech AI Systems. SecureAlert is trading at a lower price-to-earnings ratio than ScanTech AI Systems, indicating that it is currently the more affordable of the two stocks.

Summary

SecureAlert beats ScanTech AI Systems on 7 of the 12 factors compared between the two stocks.

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.

About ScanTech AI Systems

Scantech AI Systems, Inc. engages in the innovation, emerging technology, and machine learning expertise. ScanTech specializes in developing advanced screening technology that provides the most accurate and fastest detection of prohibited materials. The company was founded on September 5, 2023 and is headquartered in Buford, GA.