Comparing Iveda Solutions (OTCMKTS:IVDA) & Napco Security Technologies (NASDAQ:NSSC)

Napco Security Technologies (NASDAQ:NSSC) and Iveda Solutions (OTCMKTS:IVDA) are both small-cap industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Earnings and Valuation

This table compares Napco Security Technologies and Iveda Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Napco Security Technologies	$188.82 million	7.68	$49.82 million	$1.26	31.27
Iveda Solutions	$3.78 million	6.63	-$3.35 million	($0.24)	-6.42

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

Risk & Volatility

Napco Security Technologies has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Iveda Solutions has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Napco Security Technologies and Iveda Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Napco Security Technologies	26.38%	30.51%	26.05%
Iveda Solutions	-35.70%	-36.68%	-27.45%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Napco Security Technologies and Iveda Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Napco Security Technologies	0	2	5	0	2.71
Iveda Solutions	0	0	0	0	N/A

Napco Security Technologies presently has a consensus price target of $55.29, suggesting a potential upside of 40.32%. Given Napco Security Technologies’ higher probable upside, analysts plainly believe Napco Security Technologies is more favorable than Iveda Solutions.

Insider & Institutional Ownership

85.1% of Napco Security Technologies shares are held by institutional investors. Comparatively, 4.3% of Iveda Solutions shares are held by institutional investors. 11.5% of Napco Security Technologies shares are held by company insiders. Comparatively, 10.4% of Iveda Solutions shares are held by company 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.

Summary

Napco Security Technologies beats Iveda Solutions on 13 of the 13 factors compared between the two stocks.

About Napco Security Technologies

Napco Security Technologies, Inc. develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; 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, cellular communication devices, 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 various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products 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 Iveda Solutions

Iveda Solutions, Inc. provides artificial intelligence (AI) and digital transformation technologies in the United States, Egypt, and Taiwan. The company offers IvedaAI, a deep-learning video analytics software; IvedaPinpoint, a solution that manages Bluetooth trackers and sensors, and displays them on a map for exact location; and Sentir Video, a video surveillance solution for various kinds of applications. It also provides Cerebro IoT Platform, a software technology platform that integrates a multitude of disparate systems for central access and management of applications, subsystems, and devices; and IvedaSPS, a smart power solution utilizing in Cerebro IoT platform. In addition, the company offers Utilus smart pole solution that consists of power and Internet with a communication network for the access and management of sensors and devices. It serves airports, commercial buildings, government customers, data centers, shopping centers, hotels, banks, and safe city projects. Iveda Solutions, Inc. was founded in 2003 and is based in Mesa, Arizona.