Financial Contrast: Mobilicom (NASDAQ:MOB) and Rectitude (NASDAQ:RECT)

Rectitude (NASDAQ:RECT) and Mobilicom (NASDAQ:MOB) are both small-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Volatility and Risk

Rectitude has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Mobilicom has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500.

Institutional and Insider Ownership

13.6% of Mobilicom shares are held by institutional investors. 7.2% of Mobilicom shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Rectitude and Mobilicom, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rectitude	1	0	0	0	1.00
Mobilicom	1	1	1	0	2.00

Mobilicom has a consensus target price of $10.00, suggesting a potential downside of 0.40%. Given Mobilicom’s stronger consensus rating and higher possible upside, analysts clearly believe Mobilicom is more favorable than Rectitude.

Valuation & Earnings

This table compares Rectitude and Mobilicom”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rectitude	$32.57 million	1.68	$1.66 million	N/A	N/A
Mobilicom	$3.18 million	26.11	-$8.01 million	N/A	N/A

Rectitude has higher revenue and earnings than Mobilicom.

Profitability

This table compares Rectitude and Mobilicom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rectitude	N/A	N/A	N/A
Mobilicom	N/A	N/A	N/A

Summary

Mobilicom beats Rectitude on 7 of the 9 factors compared between the two stocks.

About Rectitude

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.

About Mobilicom

Mobilicom Limited operates as an end-to-end provider of cybersecurity and smart solutions for drones, robotics, and autonomous platforms. It designs, develops, and delivers smart solutions, such as cloud management software, communication datalink and mobile mesh networking terminals, handheld control terminals, and professional services and support for drone, robotics, and autonomous system manufacturers, as well as hardware products and software solutions. Mobilicom Limited was incorporated in 2017 and is based in Shoham, Israel.