Digital Ally (NASDAQ:DGLY – Get Rating) and Ondas (NASDAQ: ONDS – Get Rating) are both small-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Institutional and Insider Ownership
10.7% of Digital Ally shares are held by institutional investors. Comparatively, 17.5% of Ondas shares are held by institutional investors. 6.9% of Digital Ally shares are held by company insiders. Comparatively, 8.5% of Ondas shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and recommendations for Digital Ally and Ondas, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digital Ally | 0 | 0 | 0 | 0 | N/A |
| Ondas | 0 | 0 | 0 | 0 | N/A |
Volatility & Risk
Digital Ally has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Ondas has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500.
Valuation & Earnings
This table compares Digital Ally and Ondas’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digital Ally | $21.41 million | 1.76 | $25.48 million | ($0.05) | -15.54 |
| Ondas | $2.91 million | 75.49 | -$15.02 million | ($0.57) | -9.05 |
Digital Ally has higher revenue and earnings than Ondas. Digital Ally is trading at a lower price-to-earnings ratio than Ondas, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Digital Ally and Ondas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digital Ally | -9.76% | -5.52% | -3.38% |
| Ondas | -1,017.95% | -22.43% | -20.51% |
Summary
Digital Ally beats Ondas on 7 of the 11 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 sprayers 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, theaters, and performing arts. Digital Ally, Inc. was founded in 2004 and is headquartered in Lenexa, Kansas.
About Ondas
Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions in the United States and internationally. The company operates in two segments, Ondas Networks and American Robotics. It designs, develops, manufactures, sells, and supports the FullMAX software defined radio (SDR) platform. It provides FullMAX base station and remote radios; and FullMAX SDR platform that helps to enable secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Scout Drone, an AI-powered drone with imaging payloads; the ScoutBase, a ruggedized base station for housing, charging, data processing, and cloud transfer; and ScoutView, an American robotics analytics and user interface software package. It sells its products and services through direct sales force and value-added sales partners to critical infrastructure providers and applications, such as rail operators, commercial and industrial drone operators, electric and gas utilities, water and wastewater utilities, oil and gas producers and pipeline operators, and for other critical infrastructure applications in areas such as homeland security and defense, and transportation markets. The company is headquartered in Nantucket, Massachusetts.
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