Critical Review: Bridger Aerospace Group (NASDAQ:BAER) versus Wrap Technologies (OTCMKTS:WRTC)

Wrap Technologies (OTCMKTS:WRTC) and Bridger Aerospace Group (NASDAQ:BAER) are both small-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Wrap Technologies and Bridger Aerospace Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wrap Technologies	0	0	0	0	N/A
Bridger Aerospace Group	0	0	2	0	3.00

Bridger Aerospace Group has a consensus target price of $5.38, suggesting a potential upside of 112.45%. Given Bridger Aerospace Group’s higher possible upside, analysts clearly believe Bridger Aerospace Group is more favorable than Wrap Technologies.

Earnings and Valuation

This table compares Wrap Technologies and Bridger Aerospace Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wrap Technologies	N/A	N/A	N/A	($0.37)	-4.00
Bridger Aerospace Group	$73.25 million	1.62	-$77.36 million	($1.75)	-1.45

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wrap Technologies	N/A	N/A	N/A
Bridger Aerospace Group	-59.69%	N/A	-15.92%

Insider and Institutional Ownership

15.6% of Wrap Technologies shares are held by institutional investors. Comparatively, 48.9% of Bridger Aerospace Group shares are held by institutional investors. 54.5% of Wrap Technologies shares are held by company insiders. Comparatively, 70.7% of Bridger Aerospace Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Wrap Technologies has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, Bridger Aerospace Group has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500.

Summary

Bridger Aerospace Group beats Wrap Technologies on 6 of the 10 factors compared between the two stocks.

About Wrap Technologies

Wrap Technologies, Inc operates as a development stage security technology company. It focuses on delivering solutions to customers, primarily law enforcement and security personnel. The firm products includes BolaWrap 100, which is a hand-held remote restraint device that discharges an eight-foot bola style Kevlar tether to entangle an individual at a range of 10-25 feet. The company was founded by Elwood G. Norris, Scot J. Cohen and James A. Barnes on March 2, 2016 and is headquartered in Las Vegas, NV.

About Bridger Aerospace Group

Bridger Aerospace Group Holdings, Inc. provides aerial wildfire management, relief and suppression, and firefighting services to federal and state government agencies in the United States. It offers fire suppression services, such as direct fire suppression aerial firefighting support services for ground crew to drop large amounts of water quickly and directly on wildfires. The company also provides aerial surveillance services, including fire suppression aircraft over an incident and tactical coordination with the incident commander through its manned and unmanned aircraft. It operates an aircraft fleet of 18 planes. The company was founded in 2014 and is headquartered in Belgrade, Montana.