Contrasting Draganfly (NASDAQ:DPRO) & Evolv Technologies (NASDAQ:EVLV)

Evolv Technologies (NASDAQ:EVLV) and Draganfly (NASDAQ:DPRO) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Evolv Technologies and Draganfly, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolv Technologies	1	1	4	1	2.71
Draganfly	0	0	3	0	3.00

Evolv Technologies currently has a consensus target price of $9.13, indicating a potential upside of 42.91%. Draganfly has a consensus target price of $15.67, indicating a potential upside of 114.03%. Given Draganfly’s stronger consensus rating and higher possible upside, analysts clearly believe Draganfly is more favorable than Evolv Technologies.

Insider and Institutional Ownership

66.7% of Evolv Technologies shares are owned by institutional investors. Comparatively, 10.4% of Draganfly shares are owned by institutional investors. 11.3% of Evolv Technologies 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.

Volatility & Risk

Evolv Technologies has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Draganfly has a beta of 2.61, indicating that its share price is 161% more volatile than the S&P 500.

Profitability

This table compares Evolv Technologies and Draganfly’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolv Technologies	-43.76%	-55.11%	-21.55%
Draganfly	-243.20%	-71.81%	-58.36%

Earnings and Valuation

This table compares Evolv Technologies and Draganfly”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolv Technologies	$103.86 million	10.74	-$54.02 million	($0.37)	-17.26
Draganfly	$4.79 million	8.30	-$10.13 million	($1.85)	-3.96

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

Summary

Evolv Technologies beats Draganfly on 10 of the 15 factors compared between the two stocks.

About Evolv Technologies

Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based weapons detection for security screening in the United States and internationally. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives; and Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics. The company was founded in 2013 and is headquartered in Waltham, Massachusetts.

About Draganfly

Draganfly Inc. develops, manufactures, and sells cutting-edge unmanned and remote data collection and analysis platforms and systems in the United States and Canada. The company offers quadcopters, fixed-wing aircraft, ground-based robots, handheld controllers, and flight training, as well as software used for tracking, live streaming, and data collection. It also operates a health/telehealth platform that is a set of technologies that remotely detect various biometrics, such as heart rate, oxygen saturation, and blood pressure. In addition, the company provides sanitary spraying services to indoor and outdoor public gathering spaces, including sport stadiums and fields, and custom engineering, training, consulting, flight, and geographic information systems data services. It serves public safety, agriculture, industrial inspections, and mapping and surveying markets. Draganfly Inc. was founded in 1998 and is headquartered in Saskatoon, Canada.