Analyzing Freight Technologies (NASDAQ:FRGT) & VerifyMe (NASDAQ:VRME)

VerifyMe (NASDAQ:VRME) and Freight Technologies (NASDAQ:FRGT) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Volatility & Risk

VerifyMe has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Freight Technologies has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Valuation and Earnings

This table compares VerifyMe and Freight Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VerifyMe	$11.10 million	1.05	-$4.91 million	($4.00)	-2.22
Freight Technologies	$13.06 million	0.13	-$7.90 million	($872.50)	-0.00

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

Insider & Institutional Ownership

8.8% of VerifyMe shares are owned by institutional investors. Comparatively, 6.2% of Freight Technologies shares are owned by institutional investors. 19.7% of VerifyMe shares are owned by company insiders. Comparatively, 9.0% of Freight Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for VerifyMe and Freight Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VerifyMe	1	1	1	0	2.00
Freight Technologies	1	0	0	0	1.00

VerifyMe presently has a consensus target price of $15.00, suggesting a potential upside of 68.69%. Given VerifyMe’s stronger consensus rating and higher possible upside, analysts plainly believe VerifyMe is more favorable than Freight Technologies.

Profitability

This table compares VerifyMe and Freight Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VerifyMe	-47.08%	-17.16%	-14.63%
Freight Technologies	N/A	N/A	N/A

Summary

VerifyMe beats Freight Technologies on 8 of the 14 factors compared between the two stocks.

About VerifyMe

VerifyMe, Inc., together with its subsidiary, PeriShip Global, LLC, operates as a technology solutions provider that specializes in products to connect brands with consumers and providing brands with end-to-end logistics management for their products. The company operates through two segments, VerifyMe Solutions and PeriShip Global Solutions. The VerifyMe Solutions segment offers technology solutions to connect brands with consumers allowing brand owners to gather business intelligence while engaging directly with their consumers. Its solutions provide brand protection and supply chain functions, such as counterfeit prevention, traceability, consumer engagement solutions, and authentication for labels, packaging, and products, as well as tamper-proof labels. The PeriShip Global Solutions segment offers predictive analytics for optimizing delivery of time and temperature sensitive perishable products. This segment's products include PeriTrack customer dashboard, an integrated web portal tool gives its customers an in-depth look at their shipping activities based on real-time data. It also provides call center, pre-transit, post-delivery, and weather/traffic services. The company has a strategic partnership with INX International Ink Company. The company was formerly known as LaserLock Technologies, Inc. and changed its name to VerifyMe, Inc. in July 2015. VerifyMe, Inc. was incorporated in 1999 and is headquartered in Lake Mary, Florida.

About Freight Technologies

Freight Technologies, Inc., through its subsidiary, operates a transportation logistics technology platform for cross-border shipping in the United States and Mexico. Its Fr8App technology platform offers an online portal and a mobile application that provide third-party logistics services to companies in the freight transportation market; a transport management solution for customers to manage their own fleet; and freight brokerage support and customer services based on the platform. The company was incorporated in 2015 and is headquartered in The Woodlands, Texas.