Financial Review: SoundThinking (NASDAQ:SSTI) vs. Resideo Technologies (NYSE:REZI)

SoundThinking (NASDAQ:SSTI) and Resideo Technologies (NYSE:REZI) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for SoundThinking and Resideo Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoundThinking	2	2	3	0	2.14
Resideo Technologies	1	2	2	0	2.20

SoundThinking currently has a consensus price target of $14.00, indicating a potential upside of 86.42%. Resideo Technologies has a consensus price target of $39.67, indicating a potential upside of 27.04%. Given SoundThinking’s higher probable upside, equities research analysts plainly believe SoundThinking is more favorable than Resideo Technologies.

Insider and Institutional Ownership

60.7% of SoundThinking shares are owned by institutional investors. Comparatively, 91.7% of Resideo Technologies shares are owned by institutional investors. 10.4% of SoundThinking shares are owned by insiders. Comparatively, 1.5% of Resideo Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

SoundThinking has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Resideo Technologies has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.

Profitability

This table compares SoundThinking and Resideo 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%
Resideo Technologies	-6.71%	16.70%	4.66%

Earnings & Valuation

This table compares SoundThinking and Resideo 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	0.93	-$9.42 million	($1.16)	-6.47
Resideo Technologies	$7.47 billion	0.63	-$527.00 million	($3.84)	-8.13

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

Resideo Technologies, Inc. develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution. The Products and Solutions segment provides temperature and humidity control, thermal and combustion solutions, water and indoor air quality solutions, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety and fire suppression, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand as well as Resideo, Braukmann, First Alert, and BRK brands. The ADI Global Distribution segment engages in the distribution of security, fire, access control, and video products; and participates in the broader related markets of smart home, power, audio, ProAV, networking, communications, data communications, wire and cable, enterprise connectivity, and structured wiring products. The company sells its products and services through a network of professional contractors, distributors, and original equipment manufacturers, as well as retail and online merchants. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.