Actelis Networks (NASDAQ:ASNS) and Napco Security Technologies (NASDAQ:NSSC) Critical Analysis

Actelis Networks (NASDAQ:ASNS) and Napco Security Technologies (NASDAQ:NSSC) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Valuation and Earnings

This table compares Actelis Networks and Napco Security Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Actelis Networks	$7.72 million	0.83	-$6.29 million	($1.25)	-0.82
Napco Security Technologies	$191.15 million	6.96	$49.82 million	$1.36	26.68

Napco Security Technologies has higher revenue and earnings than Actelis Networks. Actelis Networks 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 Actelis Networks and Napco Security Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Actelis Networks	-56.82%	-752.62%	-45.14%
Napco Security Technologies	26.43%	29.56%	25.32%

Volatility and Risk

Actelis Networks has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500. Comparatively, Napco Security Technologies has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Actelis Networks and Napco Security Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Actelis Networks	0	0	0	0	0.00
Napco Security Technologies	0	2	5	0	2.71

Napco Security Technologies has a consensus price target of $47.14, suggesting a potential upside of 29.91%. Given Napco Security Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Napco Security Technologies is more favorable than Actelis Networks.

Insider and Institutional Ownership

12.4% of Actelis Networks shares are owned by institutional investors. Comparatively, 85.1% of Napco Security Technologies shares are owned by institutional investors. 5.5% of Actelis Networks shares are owned by company insiders. Comparatively, 5.2% of Napco Security Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Napco Security Technologies beats Actelis Networks on 12 of the 14 factors compared between the two stocks.

About Actelis Networks

Actelis Networks, Inc. engages in the design, development, manufacture, and marketing of cyber hardened, hybrid fiber, networking solutions for Internet of Things and telecommunication companies in North America, Europe, the Middle East, Israel, and the Asia Pacific. It provides rapid-deployment networking solutions for wide-area IoT applications, including federal, state, and local governments; intelligent traffic systems; and military, utility, rail, telecom, and campus applications. The company’s products include ethernet access devices; network aggregator switches; and Advanced MetaLIGHT/ Gigaline element management systems software, which enables remote management, monitoring, maintenance, and configuration of the installed equipment in the network. It also offers dynamic spectral software; and access broadband equipment. It serves offers its products through system integrators, distributors, contractors, resellers, and consultants. The company was incorporated in 1998 and is headquartered in Fremont, California.

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.