Digital Ally (NASDAQ: DGLY) and FLIR Systems (NASDAQ:FLIR) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitabiliy, analyst recommendations, valuation and risk.

Valuation & Earnings

This table compares Digital Ally and FLIR Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Digital Ally $17.40 million 1.22 -$11.37 million ($2.31) -1.62
FLIR Systems $1.69 billion 3.10 $359.46 million $1.52 25.24

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

Institutional and Insider Ownership

6.3% of Digital Ally shares are held by institutional investors. Comparatively, 92.1% of FLIR Systems shares are held by institutional investors. 19.0% of Digital Ally shares are held by company insiders. Comparatively, 3.0% of FLIR Systems 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.

Dividends

FLIR Systems pays an annual dividend of $0.60 per share and has a dividend yield of 1.6%. Digital Ally does not pay a dividend. FLIR Systems pays out 39.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations for Digital Ally and FLIR Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital Ally 0 0 2 0 3.00
FLIR Systems 0 3 4 1 2.75

Digital Ally presently has a consensus target price of $11.00, suggesting a potential upside of 193.33%. FLIR Systems has a consensus target price of $37.43, suggesting a potential downside of 2.45%. Given Digital Ally’s stronger consensus rating and higher possible upside, research analysts plainly believe Digital Ally is more favorable than FLIR Systems.

Profitability

This table compares Digital Ally and FLIR Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital Ally -71.44% -115.56% -63.11%
FLIR Systems 12.32% 13.58% 8.56%

Volatility and Risk

Digital Ally has a beta of 3.14, suggesting that its stock price is 214% more volatile than the S&P 500. Comparatively, FLIR Systems has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Summary

FLIR Systems beats Digital Ally on 11 of the 16 factors compared between the two stocks.

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.

FLIR Systems Company Profile

FLIR Systems, Inc. (FLIR) designs, develops, markets and distributes thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems and threat-detection solutions. The Company’s segments include Surveillance, Instruments, Security, OEM & Emerging Markets, Maritime and Detection. Its Surveillance segment provides enhanced imaging and recognition solutions. Its Instruments segment provides devices that image, measure and assess thermal energy, gases and other environmental elements for industrial, commercial, and scientific applications under the FLIR and Extech brands. Its OEM & Emerging Markets segment provides thermal imaging camera cores and components. Its Maritime segment develops and manufactures electronics and imaging instruments. Its Security segment develops and manufactures a range of cameras and video recording systems. The Detection segment offers sensors, instruments and integrated platform solutions.

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