Financial Comparison: Rekor Systems (NASDAQ:REKR) versus COMSovereign (NASDAQ:COMS)

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

Insider & Institutional Ownership

3.0% of COMSovereign shares are held by institutional investors. Comparatively, 30.0% of Rekor Systems shares are held by institutional investors. 36.3% of COMSovereign shares are held by insiders. Comparatively, 35.7% of Rekor Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares COMSovereign and Rekor Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
COMSovereign $9.43 million 18.34 -$37.08 million N/A N/A
Rekor Systems $9.23 million 47.92 -$14.18 million ($0.63) -17.13

Rekor Systems has lower revenue, but higher earnings than COMSovereign.

Volatility and Risk

COMSovereign has a beta of 1.96, indicating that its share price is 96% more volatile than the S&P 500. Comparatively, Rekor Systems has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for COMSovereign and Rekor Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
COMSovereign 0 0 0 0 N/A
Rekor Systems 0 0 3 0 3.00

Rekor Systems has a consensus target price of $21.75, suggesting a potential upside of 101.58%. Given Rekor Systems’ higher possible upside, analysts clearly believe Rekor Systems is more favorable than COMSovereign.

Profitability

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

Net Margins Return on Equity Return on Assets
COMSovereign N/A N/A N/A
Rekor Systems -133.40% -52.22% -34.44%

Summary

COMSovereign beats Rekor Systems on 6 of the 11 factors compared between the two stocks.

About COMSovereign

ComSovereign Holding Corp. designs, develops, markets, and sells technologically-advanced telecom solutions for network operators, mobile device carriers, governmental units, and other enterprises worldwide. The company designs, manufactures, and sells microwave packet radio equipment, such as backhaul telecom radios that transmit broadband voice, video, and data, as well as enable service providers, government agencies, enterprises, and other organizations to meet their increasing bandwidth requirements rapidly and affordably; and in-band full-duplex and transpositional modulation technologies that alleviate the performance limitations of the principal transmission technologies. It also offers intelligent batteries and back-up power solutions for use in cellular towers and other radio access network infrastructures, as well as automotive, aerospace, and marine vehicles; and tethered drones and aerostats for use in intelligence, surveillance, and reconnaissance, as well as communication applications for national defense and security customers. In addition, the company is developing silicon photonic devices used in data interconnects, communication networks, and computing systems. Further, it provides maintenance and support services, as well as other professional services, such as engineering, designing, and developing a range of next-generation network systems and system components. The company was formerly known as Drone Aviation Holding Corp. and changed its name to ComSovereign Holding Corp. in November 2019. ComSovereign Holding Corp. was incorporated in 2014 and is based in Dallas, Texas.

About Rekor Systems

Rekor Systems, Inc., through its subsidiaries, provides vehicle identification and management systems based on artificial intelligence in the United States, Canada, and internationally. It offers OpenALPR software, a vehicle recognition software. The company provides vehicle recognition and data management products and services; traffic safety systems, including hardware that identifies red light and school safety zone traffic violations, as well as software, which captures and offers forensic quality images and data, and supports citation management services; and enterprise parking enforcement solutions. Its customers include federal, state, and local government entities; retailers; private security companies; parking management companies; fast-food restaurant chains; and logistics companies. Rekor Systems, Inc. was founded in 2017 and is headquartered in Columbia, Maryland.

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