Financial Review: Rectitude (NASDAQ:RECT) & NAPCO Security Technologies (NASDAQ:NSSC)

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

Volatility & Risk

NAPCO Security Technologies has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Rectitude has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Insider & Institutional Ownership

85.1% of NAPCO Security Technologies shares are owned by institutional investors. 5.2% of NAPCO Security Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NAPCO Security Technologies	$188.82 million	6.22	$49.82 million	$1.22	26.98
Rectitude	$43.80 million	1.49	$1.66 million	N/A	N/A

NAPCO Security Technologies has higher revenue and earnings than Rectitude.

Analyst Ratings

This is a breakdown of current ratings and price targets for NAPCO Security Technologies and Rectitude, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NAPCO Security Technologies	0	4	3	0	2.43
Rectitude	0	0	0	0	0.00

NAPCO Security Technologies presently has a consensus target price of $30.8333, indicating a potential downside of 6.33%. Given NAPCO Security Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe NAPCO Security Technologies is more favorable than Rectitude.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NAPCO Security Technologies	25.00%	26.14%	22.34%
Rectitude	N/A	N/A	N/A

Summary

NAPCO Security Technologies beats Rectitude on 12 of the 12 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 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.