Financial Contrast: Wrap Technologies (NASDAQ:WRAP) and Cadre (NYSE:CDRE)

Cadre (NYSE:CDRE) and Wrap Technologies (NASDAQ:WRAP) are both small-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.

Risk and Volatility

Cadre has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Wrap Technologies has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Profitability

This table compares Cadre and Wrap Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cadre	7.33%	13.94%	6.27%
Wrap Technologies	-300.11%	-194.93%	-83.58%

Earnings and Valuation

This table compares Cadre and Wrap Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadre	$567.56 million	3.07	$36.13 million	$1.12	38.22
Wrap Technologies	$4.50 million	31.96	-$5.88 million	($0.30)	-9.30

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

Institutional and Insider Ownership

44.0% of Cadre shares are owned by institutional investors. Comparatively, 8.8% of Wrap Technologies shares are owned by institutional investors. 31.5% of Cadre shares are owned by insiders. Comparatively, 33.3% of Wrap Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Cadre and Wrap Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadre	1	0	4	0	2.60
Wrap Technologies	1	0	0	0	1.00

Cadre presently has a consensus price target of $37.67, indicating a potential downside of 12.01%. Given Cadre’s stronger consensus rating and higher probable upside, analysts clearly believe Cadre is more favorable than Wrap Technologies.

Summary

Cadre beats Wrap Technologies on 11 of the 14 factors compared between the two stocks.

About Cadre

Cadre Holdings, Inc. manufactures and distributes safety that provides protection to users in hazardous or life-threatening situations in the United States and internationally. The company operates in two segments, Products and Distribution. It offers body armor product, such as concealable, corrections, and tactical armor under the Safariland and Protech Tactical brand names; survival suits, remotely operated vehicles, specialty tools, blast sensors, accessories, and vehicle blast attenuation seats for bomb safety technicians; bomb suits; duty gear, including belts and accessories; and other protective equipment comprising communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products. The company also offers third-party products, such as uniforms, optics, boots, firearms, and ammunition. It serves first responders, such as state and local law enforcement, fire and rescue, explosive ordnance disposal technicians, emergency medical technicians, fishing, and wildlife enforcement and departments of corrections, as well as federal agencies including the U.S. Department of State, U.S. Department of Defense, U.S. Department of Interior, U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of Corrections, the Department of Energy, Los Alamos National Laboratories, Waste Isolation Plant, and various foreign government agencies. Cadre Holdings, Inc. was founded in 1964 and is headquartered in Jacksonville, Florida.

About Wrap Technologies

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company's flagship product is BolaWrap 150, a handheld remote restraint device that discharges a seven and a half-foot Kevlar tether, entangling an individual from a range of 10-25 feet. It also offers virtual reality training system, a law enforcement 3D training system employing immersive computer graphics VR with proprietary software-enabled content. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 2007 and is based in Tempe, Arizona.