Critical Contrast: Evolv Technologies (NASDAQ:EVLV) versus Giga-tronics (OTCMKTS:GIGA)

Giga-tronics (OTCMKTS:GIGA) and Evolv Technologies (NASDAQ:EVLV) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Giga-tronics and Evolv Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Giga-tronics	0	0	0	0	0.00
Evolv Technologies	1	1	3	0	2.40

Evolv Technologies has a consensus price target of $10.42, indicating a potential upside of 79.60%. Given Evolv Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Evolv Technologies is more favorable than Giga-tronics.

Institutional & Insider Ownership

10.3% of Giga-tronics shares are owned by institutional investors. Comparatively, 66.7% of Evolv Technologies shares are owned by institutional investors. 72.7% of Giga-tronics shares are owned by insiders. Comparatively, 5.2% of Evolv Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Giga-tronics and Evolv Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Giga-tronics	$37.83 million	0.00	-$15.10 million	($1.47)	-0.01
Evolv Technologies	$145.90 million	7.20	-$33.14 million	($0.03)	-193.33

Giga-tronics has higher earnings, but lower revenue than Evolv Technologies. Evolv Technologies is trading at a lower price-to-earnings ratio than Giga-tronics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Giga-tronics and Evolv Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Giga-tronics	-44.05%	N/A	-50.65%
Evolv Technologies	-3.05%	-4.53%	-1.72%

Risk & Volatility

Giga-tronics has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Evolv Technologies has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500.

Summary

Evolv Technologies beats Giga-tronics on 10 of the 14 factors compared between the two stocks.

About Giga-tronics

Giga-tronics Incorporated designs, manufactures, and distributes purpose-built electronic equipment, automated test, power electronics, supply and distribution solutions in North America, Europe, the Middle East, and internationally. It operates through three segments: Radio Frequency (RF) Solutions, Precision Electronic Solutions, and Power Electronics & Displays. The company offers RF and microwave filters, diplexers, multiplexers, detectors, switch filters, integrated assemblies, and detector logarithmic video amplifiers for military applications. It also provides precision electronic solutions, including custom computer-based automated test equipment and turnkey systems for military, medical, and industrial markets; test systems and simulators; and precision equipment used to calibrate cardiac catheters for health care products business. In addition, the company offers functional test products, as well as integrates its test products along with third-party hardware and software to deliver solutions for evaluating and validating radar and electronic warfare product performance; and develops and manufactures RADAR filters used in fighter aircrafts. Further, it provides custom and designed-in solutions for various application, including AC-DC power supplies, DC-DC converters, displays, and EMC filters; power conversion products, power supplies, uninterruptible power supplies, and distribution solutions for naval applications; and mobile power electronics and display solutions. It also offers automated test solutions, power electronics, supply and distribution solutions, as well as radio, microwave, and millimeter wave communication systems and components. Giga-tronics Incorporated is headquartered in Scottsdale, Arizona. Giga-tronics Incorporated is a subsidiary of Ault Alliance, Inc.

About Evolv Technologies

Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based weapons detection for security screening in the United States and internationally. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives; and Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics. The company was founded in 2013 and is headquartered in Waltham, Massachusetts.