Critical Analysis: Actelis Networks (NASDAQ:ASNS) & Napco Security Technologies (NASDAQ:NSSC)

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

Volatility & Risk

Napco Security Technologies has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Actelis Networks has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Insider and Institutional Ownership

85.1% of Napco Security Technologies shares are held by institutional investors. Comparatively, 12.4% of Actelis Networks shares are held by institutional investors. 5.2% of Napco Security Technologies shares are held by insiders. Comparatively, 5.5% of Actelis Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Napco Security Technologies and Actelis Networks”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	$191.15 million	6.93	$49.82 million	$1.36	26.54
Actelis Networks	$7.72 million	0.93	-$6.29 million	($1.25)	-0.92

Napco Security Technologies has higher revenue and earnings than Actelis Networks. Actelis Networks 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Napco Security Technologies	26.43%	29.56%	25.32%
Actelis Networks	-56.82%	-752.62%	-45.14%

Analyst Recommendations

This is a breakdown of recent recommendations for Napco Security Technologies and Actelis Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Napco Security Technologies	0	2	5	0	2.71
Actelis Networks	0	0	1	0	3.00

Napco Security Technologies currently has a consensus target price of $47.14, suggesting a potential upside of 30.63%. Actelis Networks has a consensus target price of $5.00, suggesting a potential upside of 334.78%. Given Actelis Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Actelis Networks is more favorable than Napco Security Technologies.

Summary

Napco Security Technologies beats Actelis Networks on 10 of the 14 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 Actelis Networks

Actelis Networks, Inc. engages in the design, development, manufacture, and marketing of cyber hardened, hybrid fiber, networking solutions for Internet of Things and telecommunication companies in North America, Europe, the Middle East, Israel, and the Asia Pacific. It provides rapid-deployment networking solutions for wide-area IoT applications, including federal, state, and local governments; intelligent traffic systems; and military, utility, rail, telecom, and campus applications. The company’s products include ethernet access devices; network aggregator switches; and Advanced MetaLIGHT/ Gigaline element management systems software, which enables remote management, monitoring, maintenance, and configuration of the installed equipment in the network. It also offers dynamic spectral software; and access broadband equipment. It serves offers its products through system integrators, distributors, contractors, resellers, and consultants. The company was incorporated in 1998 and is headquartered in Fremont, California.