Contrasting WISeKey International (NASDAQ:WKEY) and Digital Ally Inc./NV (NASDAQ:DGLY)

WISeKey International (NASDAQ:WKEY) and Digital Ally Inc./NV (NASDAQ:DGLY) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Profitability

This table compares WISeKey International and Digital Ally Inc./NV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WISeKey International	N/A	N/A	N/A
Digital Ally Inc./NV	-45.36%	-190.13%	-31.78%

Earnings and Valuation

This table compares WISeKey International and Digital Ally Inc./NV”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WISeKey International	$11.99 million	5.72	-$13.45 million	N/A	N/A
Digital Ally Inc./NV	$19.65 million	0.07	-$19.84 million	($3,222.80)	0.00

WISeKey International has higher earnings, but lower revenue than Digital Ally Inc./NV.

Analyst Ratings

This is a summary of current ratings for WISeKey International and Digital Ally Inc./NV, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WISeKey International	1	0	2	0	2.33
Digital Ally Inc./NV	1	0	0	1	2.50

WISeKey International presently has a consensus target price of $10.50, suggesting a potential upside of 25.00%. Given WISeKey International’s higher possible upside, equities research analysts plainly believe WISeKey International is more favorable than Digital Ally Inc./NV.

Risk & Volatility

WISeKey International has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Digital Ally Inc./NV has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Institutional and Insider Ownership

0.3% of WISeKey International shares are owned by institutional investors. Comparatively, 4.2% of Digital Ally Inc./NV shares are owned by institutional investors. 33.5% of WISeKey International shares are owned by company insiders. Comparatively, 0.0% of Digital Ally Inc./NV shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

WISeKey International beats Digital Ally Inc./NV on 9 of the 13 factors compared between the two stocks.

About WISeKey International

WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates in two segments, IoT and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, it engages in financing, sales, and distribution activities; and sells semiconductors secure chips. The company was founded in 1999 and is headquartered in Zug, Switzerland.

About Digital Ally Inc./NV

Digital Ally, Inc. produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States. It operates through three segments: Video Solutions, Revenue Cycle Management, and Entertainment. The company offers in-car digital video mirror systems for law enforcement; in-car digital video event recorder systems for commercial fleets; a suite of data management web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information; body-worn digital video systems for law enforcement and private security; and VuLink ecosystem that provides intuitive auto-activation functionality as well as coordination between multiple recording devices. It also provides EVO Web, a web-based software that enables police departments and security agencies to manage digital video evidence quickly and easily; FleetVU Manager, a web-based software for commercial fleet tracking and monitoring; ThermoVu, a non-contact temperature-screening instrument that measures temperature through the wrist and controls entry to facilities when temperature measurements exceed pre-determined parameters; and Shield disinfectants and cleansers, as well as other personal protective equipment and supplies, such as masks, gloves, disposable wipes, and electrostatic sprayer to health care workers and other consumers. In addition, the company offers working capital and back-office services, including insurance and benefit verification, medical treatment documentation and coding, and collections to healthcare organizations; and operates TicketSmarter.com, an online ticketing marketplace for ticket sales, partnerships, and ticket resale services for live events, including concerts, sporting events, theatres, and performing arts. Digital Ally, Inc. was founded in 2004 and is headquartered in Lenexa, Kansas.