SoundThinking (NASDAQ:SSTI) & Wrap Technologies (NASDAQ:WRAP) Financial Comparison

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

Analyst Ratings

This is a summary of current ratings and recommmendations for SoundThinking and Wrap Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoundThinking	2	2	3	0	2.14
Wrap Technologies	1	0	0	0	1.00

SoundThinking presently has a consensus price target of $14.00, indicating a potential upside of 58.91%. Given SoundThinking’s stronger consensus rating and higher possible upside, equities analysts clearly believe SoundThinking is more favorable than Wrap Technologies.

Insider & Institutional Ownership

60.7% of SoundThinking shares are owned by institutional investors. Comparatively, 8.8% of Wrap Technologies shares are owned by institutional investors. 10.4% of SoundThinking shares are owned by insiders. Comparatively, 33.3% of Wrap Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares SoundThinking and Wrap Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoundThinking	$104.13 million	1.10	-$9.42 million	($1.16)	-7.59
Wrap Technologies	$5.02 million	14.66	-$10.34 million	($0.30)	-4.40

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SoundThinking	-14.95%	-20.76%	-11.26%
Wrap Technologies	-270.03%	-115.68%	-90.83%

Volatility and Risk

SoundThinking has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Wrap Technologies has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Summary

SoundThinking beats Wrap Technologies on 9 of the 14 factors compared between the two stocks.

About SoundThinking

SoundThinking, Inc., a public safety technology company that provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform, an integrated suite of data-driven tools that enable law enforcement and community violence prevention and health organizations to be efficient in public safety outcomes. It offers ShotSpotter, an acoustic gunshot detection system; CrimeTracer, a law enforcement search engine; CaseBuilder, an investigation management system; and ResourceRouter, a software that directs patrol and community anti-violence resources to help maximize their impact. The company sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.

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.