Napco Security Technologies (NASDAQ: NSSC) and Iridium Communications (NASDAQ:IRDM) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Risk & Volatility
Napco Security Technologies has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Iridium Communications has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500.
30.7% of Napco Security Technologies shares are held by institutional investors. Comparatively, 88.5% of Iridium Communications shares are held by institutional investors. 37.8% of Napco Security Technologies shares are held by insiders. Comparatively, 5.6% of Iridium Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Napco Security Technologies and Iridium Communications’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Napco Security Technologies||$87.37 million||2.54||$5.59 million||N/A||N/A|
|Iridium Communications||$448.05 million||3.26||$233.85 million||$0.70||18.93|
Iridium Communications has higher revenue and earnings than Napco Security Technologies.
This is a summary of current ratings and recommmendations for Napco Security Technologies and Iridium Communications, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Napco Security Technologies||0||0||1||0||3.00|
Napco Security Technologies presently has a consensus target price of $14.00, suggesting a potential upside of 18.14%. Iridium Communications has a consensus target price of $16.00, suggesting a potential upside of 20.75%. Given Iridium Communications’ higher probable upside, analysts plainly believe Iridium Communications is more favorable than Napco Security Technologies.
This table compares Napco Security Technologies and Iridium Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Napco Security Technologies||7.96%||12.30%||10.20%|
Iridium Communications beats Napco Security Technologies on 8 of the 13 factors compared between the two stocks.
About Napco Security Technologies
Napco Security Technologies, Inc. manufactures and sells security products and software worldwide. The company offers access control systems, door security products, intrusion and fire alarm systems, and video surveillance systems for commercial, residential, institutional, industrial, and governmental applications. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company's alarm systems include automatic communicators, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and peripheral equipment for access control and video surveillance systems; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products primarily to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.
About Iridium Communications
Iridium Communications Inc. provides mobile voice and data communications services through satellite to businesses, the U.S. and foreign governments, non-governmental organizations, and consumers worldwide. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of things (IoT) services. It also provides other services, such as inbound connections from the public switched telephone network, short message, subscriber identity module, activation, customer reactivation, and other peripheral services. In addition, the company offers voice and data solutions comprising personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; submarine communications applications; specialized communications solutions for high-value individuals; mobile communications and data devices for the military and intelligence community, such as secure satellite handsets, as well as netted voice, messaging, and paging services; and maintenance services for the department of defense's dedicated gateway. Further, it provides satellite handsets, personal connectivity devices, voice and data modems, broadband data devices, and IoT data devices; various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, charging units, and others; and engineering and support services. Iridium Communications Inc. sells its products and services to commercial end users through a wholesale distribution network that include service providers, and value-added resellers and manufacturers. The company was formerly known as Iridium Holdings LLC and changed its name to Iridium Communications Inc. in September 2009. Iridium Communications Inc. was founded in 2000 and is headquartered in McLean, Virginia.
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