Mitcham Industries (NASDAQ: MIND) and Digital Ally (NASDAQ:DGLY) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitabiliy, institutional ownership, dividends, analyst recommendations and valuation.

Insider & Institutional Ownership

68.8% of Mitcham Industries shares are owned by institutional investors. Comparatively, 6.3% of Digital Ally shares are owned by institutional investors. 9.0% of Mitcham Industries shares are owned by insiders. Comparatively, 19.5% of Digital Ally shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Mitcham Industries and Digital Ally’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitcham Industries -61.58% -36.70% -29.47%
Digital Ally -71.44% -115.56% -63.11%

Analyst Recommendations

This is a summary of recent recommendations for Mitcham Industries and Digital Ally, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitcham Industries 0 0 0 0 N/A
Digital Ally 0 0 2 0 3.00

Digital Ally has a consensus price target of $10.00, suggesting a potential upside of 189.86%. Given Digital Ally’s higher probable upside, analysts plainly believe Digital Ally is more favorable than Mitcham Industries.

Risk and Volatility

Mitcham Industries has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Digital Ally has a beta of 2.9, indicating that its stock price is 190% more volatile than the S&P 500.

Valuation and Earnings

This table compares Mitcham Industries and Digital Ally’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mitcham Industries $47.70 million 1.03 -$24.80 million ($2.49) -1.63
Digital Ally $17.40 million 1.13 -$11.37 million ($2.31) -1.49

Digital Ally has higher revenue, but lower earnings than Mitcham Industries. Mitcham Industries is trading at a lower price-to-earnings ratio than Digital Ally, indicating that it is currently the more affordable of the two stocks.

Summary

Digital Ally beats Mitcham Industries on 7 of the 12 factors compared between the two stocks.

Mitcham Industries Company Profile

Mitcham Industries, Inc. is a provider of equipment to the geophysical, oceanographic and hydrographic industries. The Company operates through two segments. The Equipment Leasing segment is primarily engaged in the leasing of seismic equipment to companies in the oil and gas industry across the world. The Equipment Manufacturing and Sales segment is engaged in the design, production and sale of marine seismic equipment, and oceanographic and hydrographic equipment. Its leasing business includes Mitcham Canada ULC, Seismic Asia Pacific Pty Ltd., Mitcham Seismic Eurasia LLC, Mitcham Europe Ltd. and Mitcham Marine Leasing Pte. Ltd. The Equipment Manufacturing and Sales Segment includes its Seamap International Holdings Pte, Ltd. (Seamap) business and Klein Marine Systems, Inc. (Klein). Seamap designs, manufactures and sells a range of products for the seismic, hydrographic and offshore industries. Klein develops and manufactures high performance side scan sonar systems.

Digital Ally Company Profile

Digital Ally, Inc. produces digital video imaging and storage products for use in law enforcement, security and commercial applications. The Company’s products include in-car digital video/audio recorder contained in a rear-view mirror for use in law enforcement and commercial fleets; a system that provides its law enforcement customers with audio/video surveillance from multiple vantage points and hands-free automatic activation of body-worn cameras and in-car video systems; a weather-resistant mobile digital video recording system for use on motorcycles, all-terrain vehicles (ATVs) and boats; a miniature digital video system designed to be worn on an individual’s body, and a hand-held laser speed detection device that it offers primarily to law enforcement agencies. The Company sells its products to law enforcement agencies and other security organizations, consumer and commercial fleet operators through direct sales domestically and third-party distributors internationally.

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