Critical Review: Satellogic (NASDAQ:SATL) versus Wrap Technologies (NASDAQ:WRAP)

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

Valuation & Earnings

This table compares Wrap Technologies and Satellogic”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wrap Technologies	$4.67 million	20.09	-$10.34 million	($0.27)	-6.20
Satellogic	$31.91 million	22.36	-$4.78 million	($0.82)	-5.66

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wrap Technologies	-205.10%	-101.24%	-82.26%
Satellogic	-325.65%	303.84%	6.01%

Risk and Volatility

Wrap Technologies has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Satellogic has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Wrap Technologies and Satellogic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wrap Technologies	1	0	0	0	1.00
Satellogic	1	1	5	1	2.75

Satellogic has a consensus target price of $8.90, indicating a potential upside of 91.81%. Given Satellogic’s stronger consensus rating and higher probable upside, analysts clearly believe Satellogic is more favorable than Wrap Technologies.

Insider & Institutional Ownership

8.8% of Wrap Technologies shares are owned by institutional investors. Comparatively, 17.6% of Satellogic shares are owned by institutional investors. 33.3% of Wrap Technologies shares are owned by insiders. Comparatively, 38.8% of Satellogic 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.

Summary

Satellogic beats Wrap Technologies on 13 of the 15 factors compared between the two stocks.

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.

About Satellogic

Satellogic Inc. operates as an integrated geospatial company in the Asia Pacific, North America, and internationally. It engages in tasking satellites with monitoring assets and keeping up with their changing reality for government and commercial customers; control satellites on top of specific areas of interest for governments; and sale and support satellites. The company was founded in 2010 and is headquartered in Montevideo, Uruguay.