Reviewing Rekor Systems (NASDAQ:REKR) & Bumble (NASDAQ:BMBL)

Rekor Systems (NASDAQ:REKR) and Bumble (NASDAQ:BMBL) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Valuation & Earnings

This table compares Rekor Systems and Bumble”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rekor Systems	$48.45 million	2.37	-$31.46 million	($0.23)	-3.63
Bumble	$965.66 million	0.41	-$693.14 million	($5.84)	-0.52

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

Volatility & Risk

Rekor Systems has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, Bumble has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.

Insider & Institutional Ownership

45.7% of Rekor Systems shares are held by institutional investors. Comparatively, 94.9% of Bumble shares are held by institutional investors. 3.2% of Rekor Systems shares are held by insiders. Comparatively, 15.4% of Bumble shares are held 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 Rekor Systems and Bumble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rekor Systems	-60.48%	-80.28%	-36.87%
Bumble	-72.04%	32.66%	15.57%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Rekor Systems and Bumble, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rekor Systems	1	0	0	0	1.00
Bumble	2	14	1	0	1.94

Bumble has a consensus target price of $4.33, indicating a potential upside of 42.27%. Given Bumble’s stronger consensus rating and higher possible upside, analysts clearly believe Bumble is more favorable than Rekor Systems.

Summary

Bumble beats Rekor Systems on 10 of the 14 factors compared between the two stocks.

About Rekor Systems

Rekor Systems, Inc., a technology company, provides infrastructure solutions for transportation, public safety, and urban mobility markets in the United States and internationally. The company's platforms include Rekor One, an AI-powered roadway intelligence platform; Rekor Command, a comprehensive cross-agency platform that offers various applications for traffic management centers, freeway service patrol, first responders, and maintenance crews; Rekor Discover, a platform that ingests data from its hardware and automates comprehensive analytics and actionable insights about the movement of objects across the roadway; and Rekor Scout platform, which automates previously manual processes with collaborative solutions that keep all stakeholders apprised of developing situations and accelerate reaction times to incidents and offenders. It also offers Rekor AutoNotice, a cloud-based financial management application that delivers a turnkey information and citation management solution for cities, states, and municipalities for primary and secondary offenses; and Rekor CarCheck, which allows its AI based vehicle and license plate recognition technology to be accessed for a range of commercial applications. In addition, the company offers Rekor Edge Max System, a fixed traffic data collection system that captures and transforms roadway data into holistic traffic insights; Rekor Edge Pro, a vehicle recognition solution that is used on a standalone basis or integrated into a network; and Rekor Edge Flex, a portable data collection system. Further, it provides traffic services, including traditional traffic studies, which delivers data and insights for planning and management of roadway infrastructure and commercial initiatives; innovative AI-driven traffic studies for traffic management; and traffic engineering services. The company was incorporated in 2017 and is headquartered in Columbia, Maryland.

About Bumble

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.