Financial Review: WISeKey International (NASDAQ:WKEY) and Xylo Technologies (NASDAQ:XYLO)

Xylo Technologies (NASDAQ:XYLO) and WISeKey International (NASDAQ:WKEY) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Xylo Technologies and WISeKey International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xylo Technologies	0	0	0	0	0.00
WISeKey International	0	0	1	0	3.00

WISeKey International has a consensus target price of $4.00, suggesting a potential downside of 69.23%. Given WISeKey International’s stronger consensus rating and higher possible upside, analysts clearly believe WISeKey International is more favorable than Xylo Technologies.

Earnings and Valuation

This table compares Xylo Technologies and WISeKey International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xylo Technologies	$57.64 million	0.05	-$16.02 million	N/A	N/A
WISeKey International	$20.99 million	4.17	-$15.36 million	N/A	N/A

WISeKey International has lower revenue, but higher earnings than Xylo Technologies.

Insider and Institutional Ownership

0.3% of Xylo Technologies shares are held by institutional investors. Comparatively, 0.3% of WISeKey International shares are held by institutional investors. 2.2% of Xylo Technologies shares are held by insiders. Comparatively, 33.5% of WISeKey International shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Xylo Technologies and WISeKey International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xylo Technologies	N/A	N/A	N/A
WISeKey International	N/A	N/A	N/A

Volatility & Risk

Xylo Technologies has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, WISeKey International has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500.

Summary

WISeKey International beats Xylo Technologies on 8 of the 9 factors compared between the two stocks.

About Xylo Technologies

Xylo Technologies Ltd, a technology-based company, provides medical-related devices and products in the United States, Europe, Asia, Israel, and internationally. The company operates through Corporate, E-commerce, Online Advertising & Internet Traffic Routing, Online Event Management, and Others segments. It offers Medigus Ultrasonic Surgical Endostapler, an endoscopy system, which is used for the treatment of gastroesophageal reflux disease. The company also develops biological gels to protect patients against biological threats and reduce the intrusion of allergens and viruses through the upper airways and eye cavities. In addition, it provides digital advertising platform; and operates online stores for the sale of various consumer products on the Amazon online marketplace, as well as an online event management and ticketing platform. Further, the company develops wireless vehicle battery charging technologies and modular electronic vehicles. The company was formerly known as Medigus Ltd. and changed its name to Xylo Technologies Ltd in April 2024. Xylo Technologies Ltd was incorporated in 1999 and is headquartered in Tel Aviv-Yafo, Israel.

About WISeKey International

WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates in two segments, IoT and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, it engages in financing, sales, and distribution activities; and sells semiconductors secure chips. The company was founded in 1999 and is headquartered in Zug, Switzerland.