NAPCO Security Technologies (NASDAQ:NSSC) and Wrap Technologies (NASDAQ:WRAP) Head-To-Head Survey

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

Risk & Volatility

Wrap Technologies has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, NAPCO Security Technologies has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Wrap Technologies and NAPCO Security Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wrap Technologies	1	0	0	0	1.00
NAPCO Security Technologies	0	2	6	0	2.75

NAPCO Security Technologies has a consensus target price of $47.50, suggesting a potential upside of 23.34%. Given NAPCO Security Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe NAPCO Security Technologies is more favorable than Wrap Technologies.

Insider & Institutional Ownership

8.8% of Wrap Technologies shares are held by institutional investors. Comparatively, 85.1% of NAPCO Security Technologies shares are held by institutional investors. 33.3% of Wrap Technologies shares are held by insiders. Comparatively, 5.7% of NAPCO Security Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Wrap Technologies and NAPCO Security Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wrap Technologies	$4.50 million	28.39	-$5.88 million	($0.30)	-8.27
NAPCO Security Technologies	$181.62 million	7.56	$43.41 million	$1.23	31.31

NAPCO Security Technologies has higher revenue and earnings than Wrap Technologies. Wrap Technologies is trading at a lower price-to-earnings ratio than NAPCO Security Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wrap Technologies	-300.11%	-194.93%	-83.58%
NAPCO Security Technologies	23.76%	26.09%	22.26%

Summary

NAPCO Security Technologies beats Wrap Technologies on 12 of the 14 factors compared between the two stocks.

About Wrap Technologies

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company's flagship product is BolaWrap 150, a handheld remote restraint device that discharges a seven and a half-foot Kevlar tether, entangling an individual from a range of 10-25 feet. It also offers virtual reality training system, a law enforcement 3D training system employing immersive computer graphics VR with proprietary software-enabled content. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 2007 and is based in Tempe, Arizona.

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.