SuperCom (NASDAQ:SPCB) & Assa Abloy (OTCMKTS:ASAZY) Critical Analysis

Assa Abloy (OTCMKTS:ASAZY) and SuperCom (NASDAQ:SPCB) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares Assa Abloy and SuperCom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Assa Abloy	9.48%	14.16%	6.65%
SuperCom	11.00%	37.28%	16.17%

Volatility & Risk

Assa Abloy has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, SuperCom has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Assa Abloy and SuperCom, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Assa Abloy	0	3	0	0	2.00
SuperCom	1	0	1	0	2.00

SuperCom has a consensus target price of $18.00, suggesting a potential upside of 69.49%. Given SuperCom’s higher probable upside, analysts clearly believe SuperCom is more favorable than Assa Abloy.

Valuation and Earnings

This table compares Assa Abloy and SuperCom”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Assa Abloy	$14.20 billion	N/A	$1.48 billion	$0.68	28.18
SuperCom	$27.43 million	1.13	$660,000.00	$0.43	24.70

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

Institutional and Insider Ownership

47.8% of SuperCom shares are held by institutional investors. 18.3% of SuperCom shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

SuperCom beats Assa Abloy on 7 of the 12 factors compared between the two stocks.

About Assa Abloy

ASSA ABLOY AB (publ) provides door opening and access products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, India, Africa, North and South America, Asia, and Oceania. The company provides digital access solutions, such as electronic access control ecosystem, wireless solutions, electronic key solutions, standalone access solutions, and wired solutions; swing, revolving, and sliding doors; mechanical products, including hinges, lever handles, mortise lockcases, euro profile cylinders, panic exit devices, door closers, floor spring, and general hardware; and doors. It offers Openings Studio, a building information modeling software ecosystem is collaboration tool for designing, documenting, and managing openings. The company provides its products primarily under the ASSA ABLOY, Yale, and HID brands. It sells its products through distributors and wholesalers. The company serves aviation, education, distribution and logistics, entertainment and public facility, finance and banking, government and military, healthcare, hospitality, manufacturing, mining, office and enterprise, homes and residence, retail, shipyards, and transportation industries. ASSA ABLOY AB (publ) was incorporated in 1954 and is based in Stockholm, Sweden.

About SuperCom

SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. The company operates in three segments: e-Gov, IoT and Connectivity, and Cyber Security. It offers MAGNA, a platform for national ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. The company also provides PureRF, a solution based on RFID tag technology to identify, locate, track, monitor, count, and protect people and objects. Its PureRF suite includes PureRF Tags, Hands-Free Long-Range RFID Asset and Vehicle Tags, PureRF Readers, PureRF Activators, PureRF Initializer, House Arrest Monitoring System, PureRF RF Bracelet, PureCom RF Base Station, GOS Offender Tracking System, PureTrack, PureBeacon, PureMonitor Offender Electronic Monitoring Software, Inmate Monitoring System, DoorGuard, and Personnel Tag. In addition, the company offers domestic violence victim protection systems. Further, it provides connectivity products and solutions comprising AVIDITY WBSac, BOLSTER WBSn, BreezeULTRA P6000, Arena controller, and BreezeNET B; cyber security strategic business unit products and solutions, which include Safend Encryptor, Safend Protector, Safend Inspector, Safend Discoverer, and SafeMobile; and wireless and RFID products include solutions for carrier Wi-Fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. It sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives, resellers, and distributors. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was incorporated in 1988 and is headquartered in Tel Aviv, Israel.