Critical Review: Frequency Electronics (NASDAQ:FEIM) and SMX (Security Matters) Public (NASDAQ:SMX)

Frequency Electronics (NASDAQ:FEIM) and SMX (Security Matters) Public (NASDAQ:SMX) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Frequency Electronics and SMX (Security Matters) Public, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frequency Electronics	0	1	1	1	3.00
SMX (Security Matters) Public	1	0	0	0	1.00

Frequency Electronics currently has a consensus price target of $43.67, suggesting a potential downside of 40.26%. Given Frequency Electronics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Frequency Electronics is more favorable than SMX (Security Matters) Public.

Valuation and Earnings

This table compares Frequency Electronics and SMX (Security Matters) Public”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frequency Electronics	$63.23 million	11.41	-$900,000.00	($0.09)	-812.11
SMX (Security Matters) Public	N/A	N/A	-$169.18 million	N/A	N/A

Frequency Electronics has higher revenue and earnings than SMX (Security Matters) Public.

Risk and Volatility

Frequency Electronics has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, SMX (Security Matters) Public has a beta of -2.96, suggesting that its stock price is 396% less volatile than the S&P 500.

Institutional & Insider Ownership

58.6% of Frequency Electronics shares are held by institutional investors. Comparatively, 15.7% of SMX (Security Matters) Public shares are held by institutional investors. 28.0% of Frequency Electronics shares are held by company insiders. Comparatively, 9.4% of SMX (Security Matters) Public shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Frequency Electronics and SMX (Security Matters) Public’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frequency Electronics	-1.43%	-1.56%	-0.98%
SMX (Security Matters) Public	N/A	N/A	N/A

Summary

Frequency Electronics beats SMX (Security Matters) Public on 9 of the 12 factors compared between the two stocks.

About Frequency Electronics

Frequency Electronics, Inc., together with its subsidiaries, engages in designing, development, and manufacturing of precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time and frequency control products for communication satellites, terrestrial cellular telephone or other ground-based telecommunication stations; and other components and systems for the U.S. military; and provides design and technical support for satellite business. FEI-Zyfer segment offers global positioning system technologies to systems and subsystems for secure communications, both government and commercial, and other locator applications; and engages in sale and support of wireline telecommunications products, including US5G. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.

About SMX (Security Matters) Public

SMX (Security Matters) Public Limited Company, through its subsidiaries, engages in the development and commercialization of track and trace technologies for various industries. It owns and commercializes technology to mark various objects, such as solid, liquid, or gas allowing identification, circularity, proof of authenticity, tracking supply chain movements, and quality assurance. The company's technology comprises a chemical-based hidden barcode system, as well as a reader to identify these codes and a blockchain record to store and protect ownership data. It serves brand owners and manufacturers. The company was formerly known as Empatan Public Limited Company and changed its name to SMX (Security Matters) Public Limited Company in February 2023. SMX (Security Matters) Public Limited Company was incorporated in 2022 and is based in Dublin, Ireland.