Digital Ally (NASDAQ:KUST – Get Free Report) and B.O.S. Better Online Solutions (NASDAQ:BOSC – Get Free Report) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.
Volatility and Risk
Digital Ally has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, B.O.S. Better Online Solutions has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.
Institutional & Insider Ownership
4.2% of Digital Ally shares are held by institutional investors. Comparatively, 15.1% of B.O.S. Better Online Solutions shares are held by institutional investors. 0.0% of Digital Ally shares are held by company insiders. Comparatively, 4.3% of B.O.S. Better Online Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digital Ally | 1 | 0 | 0 | 0 | 1.00 |
| B.O.S. Better Online Solutions | 0 | 1 | 1 | 0 | 2.50 |
B.O.S. Better Online Solutions has a consensus price target of $8.00, suggesting a potential upside of 68.78%. Given B.O.S. Better Online Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe B.O.S. Better Online Solutions is more favorable than Digital Ally.
Profitability
This table compares Digital Ally and B.O.S. Better Online Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digital Ally | -96.36% | -277.67% | -56.35% |
| B.O.S. Better Online Solutions | 7.22% | 12.69% | 8.29% |
Valuation & Earnings
This table compares Digital Ally and B.O.S. Better Online Solutions”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digital Ally | $13.75 million | 0.31 | -$6.67 million | ($16.87) | -0.04 |
| B.O.S. Better Online Solutions | $50.57 million | 0.66 | $3.61 million | $0.52 | 9.12 |
B.O.S. Better Online Solutions has higher revenue and earnings than Digital Ally. Digital Ally is trading at a lower price-to-earnings ratio than B.O.S. Better Online Solutions, indicating that it is currently the more affordable of the two stocks.
Summary
B.O.S. Better Online Solutions beats Digital Ally on 13 of the 14 factors compared between the two stocks.
About Digital Ally
Digital Ally, Inc. produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States and internationally. It operates through Video Solutions, Revenue Cycle Management, and Ticketing segments. The company offers in-car digital video mirror systems for law enforcement; in-car digital video event recorder systems for commercial fleets; a suite of data management web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information; miniature body-worn digital video systems for law enforcement and private security; and VuLink, an in-car device that enables an in-car digital audio/video system and a body worn digital audio/video camera system to automatically and simultaneously start recording. It also provides VuVault and EVO Web, a cloud-based evidence management system; FleetVU Manager, a web-based software for commercial fleet tracking and monitoring; ThermoVu, a non-contact temperature-screening instrument that measures temperature through the wrist and controls entry to facilities when temperature measurements exceed pre-determined parameters; and Shield disinfectants and cleansers, as well as other personal protective equipment and supplies, such as masks, gloves, sanitizer wipes, and electrostatic sprayer to health care workers and other consumers. In addition, the company offers working capital and back-office services, including insurance and benefit verification, medical treatment documentation and coding, and collections to healthcare organizations; and operates TicketSmarter.com, an online ticketing marketplace for ticket sales, partnerships, and ticket resale services for live events, including concerts, sporting events, theatres, and performing arts. Digital Ally, Inc. was founded in 2004 and is headquartered in Lenexa, Kansas.
About B.O.S. Better Online Solutions
B.O.S. Better Online Solutions Ltd. provides intelligent robotics, radio frequency identification (RFID), and supply chain solutions for enterprises worldwide. The Intelligent Robotics Division provides custom-made machines for industrial automation and assembly of products and packing that offer technological solutions. The RFID Division provides hardware products, such as thermal and barcode printers; RFID and barcode scanners and readers; wireless, mobile, and forklift terminals; wireless infrastructure; active and passive RFID tags; ribbons, labels, and tags; and RFID systems for libraries. It also develops Warehouse Management System, a data collection solution for logistics management in logistic centers and warehouses; RFID-based systems for tracking inventory in a produce packing house; automatic systems for industrial packing lines; automatic systems to track the production line; and automatic systems to identify and track vehicles for transportation-related settings. In addition, this segment provides maintenance and repair services for data collection equipment, as well as warehouse and on-site service plans; on-site inventory count services in various fields; and asset tagging and counting services for corporate and governmental entities. The Supply Chain Division offers electro-mechanical components, electronics components, communications products, and components consolidation services to aerospace, defense, and other industries. This segment also provides inventory and quality control management of components entering production lines; and inventory management services for ongoing projects, including warehouse functions. The company markets its products through direct sales and sales agents, as well as through distributors. B.O.S. Better Online Solutions Ltd. was incorporated in 1990 and is headquartered in Rishon LeZion, Israel.
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