Head-To-Head Review: Red Cat (NASDAQ:RCAT) and NAMI (NASDAQ:NAMI)

NAMI (NASDAQ:NAMI) and Red Cat (NASDAQ:RCAT) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Earnings & Valuation

This table compares NAMI and Red Cat”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NAMI	$55.68 million	1.04	$2.78 million	N/A	N/A
Red Cat	$17.84 million	78.29	-$52.52 million	($0.44)	-26.59

NAMI has higher revenue and earnings than Red Cat.

Profitability

This table compares NAMI and Red Cat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NAMI	N/A	N/A	N/A
Red Cat	N/A	-38.26%	-31.33%

Institutional and Insider Ownership

38.0% of Red Cat shares are owned by institutional investors. 15.3% of Red Cat shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for NAMI and Red Cat, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NAMI	1	0	0	0	1.00
Red Cat	1	0	2	2	3.00

Red Cat has a consensus price target of $14.00, suggesting a potential upside of 19.66%. Given Red Cat’s stronger consensus rating and higher probable upside, analysts plainly believe Red Cat is more favorable than NAMI.

Summary

Red Cat beats NAMI on 7 of the 11 factors compared between the two stocks.

About NAMI

Jinxin Technology Holding Co. engages in the provision of digital content services. The company was founded in August 2015 and is headquartered in Shanghai, China.

About Red Cat

Red Cat Holdings, Inc. engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment. Red Cat Holdings, Inc. is based in San Juan, Puerto Rico.