Rekor Systems (NASDAQ:REKR) & Tapinator (OTCMKTS:TAPM) Critical Comparison

Tapinator (OTCMKTS:TAPM) and Rekor Systems (NASDAQ:REKR) 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 institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Insider & Institutional Ownership

45.7% of Rekor Systems shares are owned by institutional investors. 25.8% of Tapinator shares are owned by insiders. Comparatively, 3.2% of Rekor Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Tapinator has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Rekor Systems has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Tapinator and Rekor Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tapinator	0	0	0	0	0.00
Rekor Systems	1	0	0	0	1.00

Profitability

This table compares Tapinator and Rekor Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tapinator	N/A	N/A	N/A
Rekor Systems	-60.48%	-80.28%	-36.87%

Valuation and Earnings

This table compares Tapinator and Rekor Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tapinator	$4.66 million	0.09	-$299,750.00	($0.11)	-1.40
Rekor Systems	$48.45 million	2.01	-$31.46 million	($0.23)	-3.07

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

Summary

Tapinator beats Rekor Systems on 7 of the 12 factors compared between the two stocks.

About Tapinator

Tapinator, Inc. develops and publishes mobile games and applications on the iOS, Google Play, and Amazon platforms in North America and Europe. The company’s library includes approximately 300 titles, such as Video Poker Classic and Crypto Trillionaire. It also provides in-app purchase and subscription services. The company was founded in 2013 and is headquartered in New York, New York.

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.