Reviewing Data443 Risk Mitigation (OTCMKTS:ATDS) & NAPCO Security Technologies (NASDAQ:NSSC)

NAPCO Security Technologies (NASDAQ:NSSC) and Data443 Risk Mitigation (OTCMKTS:ATDS) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares NAPCO Security Technologies and Data443 Risk Mitigation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NAPCO Security Technologies	24.70%	27.45%	23.48%
Data443 Risk Mitigation	-71.49%	N/A	-57.70%

Analyst Recommendations

This is a summary of current recommendations for NAPCO Security Technologies and Data443 Risk Mitigation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NAPCO Security Technologies	0	2	6	0	2.75
Data443 Risk Mitigation	0	0	0	0	0.00

NAPCO Security Technologies currently has a consensus price target of $47.83, indicating a potential upside of 8.34%. Given NAPCO Security Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe NAPCO Security Technologies is more favorable than Data443 Risk Mitigation.

Institutional & Insider Ownership

85.1% of NAPCO Security Technologies shares are owned by institutional investors. 5.7% of NAPCO Security Technologies shares are owned by insiders. Comparatively, 36.4% of Data443 Risk Mitigation shares are owned by 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 & Risk

NAPCO Security Technologies has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Data443 Risk Mitigation has a beta of 49.33, suggesting that its share price is 4,833% more volatile than the S&P 500.

Valuation & Earnings

This table compares NAPCO Security Technologies and Data443 Risk Mitigation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NAPCO Security Technologies	$192.03 million	8.20	$43.41 million	$1.33	33.20
Data443 Risk Mitigation	$4.87 million	0.04	-$6.09 million	($1.00)	0.00

NAPCO Security Technologies has higher revenue and earnings than Data443 Risk Mitigation. Data443 Risk Mitigation is trading at a lower price-to-earnings ratio than NAPCO Security Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

NAPCO Security Technologies beats Data443 Risk Mitigation on 12 of the 14 factors compared between the two stocks.

About NAPCO Security Technologies

Napco Security Technologies, Inc. develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company’s alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.

About Data443 Risk Mitigation

Data443 Risk Mitigation, Inc. provides data security and privacy management solutions in the United States. The company offers Cyren Threat Intelligence Service that provides security, response, software, and services; Cyren Inbox Security for Microsoft 365, which prevents user access to malicious links and attachments; Ransomware Recovery Manager to recover a workstation upon infection to the last known business-operable state; Data Identification Manager, a data classification and governance technology; Data Archive Manager for enterprise data retention management and archiving; and Sensitive Content Manager, a cloud-based platform for managing, protecting, and distributing digital content. It also provides Data Placement Manager, a data transport, transformation, and delivery product; Access Control Manager that enables access controls across various platforms at scale for internal client systems and commercial public cloud platforms; Blockchain Protection Manager, which protects blockchain transactions from inadvertent disclosure and data leaks; and Global Privacy Manager, a privacy compliance and consumer loss mitigation platform. In addition, the company offers IntellyWP to enhance the user experience for content management platform; Chat History Scanner, which scans chat messages for compliance, security, personally identifiable information, personal information, payment card industry information, and custom keywords; and GDPR Framework, CCPA Framework, and LGPD Framework WordPress Plugins that enables organizations’ compliance on privacy rules and regulations. It serves the government, financial services, healthcare, manufacturing, retail, technology, and telecommunications sectors. The company was formerly known as LandStar, Inc. and changed its name to Data443 Risk Mitigation, Inc. in October 2019. Data443 Risk Mitigation, Inc. was founded in 1998 and is headquartered in Research Triangle Park, North Carolina.