Analyzing Capstone Cos. (OTCMKTS:CAPC) and SuperCom (NASDAQ:SPCB)

Capstone Cos. (OTCMKTS:CAPC) and SuperCom (NASDAQ:SPCB) are both small-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Institutional and Insider Ownership

47.8% of SuperCom shares are owned by institutional investors. 40.0% of Capstone Cos. shares are owned by company insiders. Comparatively, 18.3% of SuperCom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Capstone Cos. and SuperCom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capstone Cos.	N/A	-1,009.32%	-172.71%
SuperCom	2.98%	21.03%	12.67%

Volatility and Risk

Capstone Cos. has a beta of 2.5, meaning that its share price is 150% more volatile than the S&P 500. Comparatively, SuperCom has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Capstone Cos. and SuperCom, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capstone Cos.	0	0	0	0	0.00
SuperCom	1	0	0	0	1.00

Earnings & Valuation

This table compares Capstone Cos. and SuperCom”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capstone Cos.	$140,000.00	42.55	-$920,000.00	($0.02)	-6.00
SuperCom	$27.90 million	2.26	$3.75 million	$0.05	234.80

SuperCom has higher revenue and earnings than Capstone Cos.. Capstone Cos. is trading at a lower price-to-earnings ratio than SuperCom, indicating that it is currently the more affordable of the two stocks.

Summary

SuperCom beats Capstone Cos. on 9 of the 12 factors compared between the two stocks.

About Capstone Cos.

Capstone Companies, Inc., through its subsidiaries, operates as a designer, manufacturer, and marketer of consumer products to simplify daily living through technology. The company offers Connected Chef, a purpose-built kitchen appliance tablet with an integrated platform for cooking accessories, such as cutting board, as well as Smart Mirrors. It sells its products through sales agents, as well as directly to home-goods chain retailers. The company was formerly known as CHDT Corporation and changed its name to Capstone Companies, Inc. in June 2012. Capstone Companies, Inc. was incorporated in 1996 and is headquartered in Deerfield Beach, Florida.

About SuperCom

SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. The company operates in three segments: e-Gov, IoT and Connectivity, and Cyber Security. It offers MAGNA, a platform for national ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. The company also provides PureRF, a solution based on RFID tag technology to identify, locate, track, monitor, count, and protect people and objects. Its PureRF suite includes PureRF Tags, Hands-Free Long-Range RFID Asset and Vehicle Tags, PureRF Readers, PureRF Activators, PureRF Initializer, House Arrest Monitoring System, PureRF RF Bracelet, PureCom RF Base Station, GOS Offender Tracking System, PureTrack, PureBeacon, PureMonitor Offender Electronic Monitoring Software, Inmate Monitoring System, DoorGuard, and Personnel Tag. In addition, the company offers domestic violence victim protection systems. Further, it provides connectivity products and solutions comprising AVIDITY WBSac, BOLSTER WBSn, BreezeULTRA P6000, Arena controller, and BreezeNET B; cyber security strategic business unit products and solutions, which include Safend Encryptor, Safend Protector, Safend Inspector, Safend Discoverer, and SafeMobile; and wireless and RFID products include solutions for carrier Wi-Fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. It sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives, resellers, and distributors. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was incorporated in 1988 and is headquartered in Tel Aviv, Israel.