SoundThinking (NASDAQ:SSTI – Get Free Report) and Versus Systems (NASDAQ:VS – Get Free Report) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.
Volatility & Risk
SoundThinking has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Versus Systems has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
Valuation and Earnings
This table compares SoundThinking and Versus Systems”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundThinking | $104.13 million | 1.02 | -$9.42 million | ($1.29) | -6.38 |
| Versus Systems | $1.51 million | 3.16 | -$1.79 million | ($0.35) | -2.20 |
Versus Systems has lower revenue, but higher earnings than SoundThinking. SoundThinking is trading at a lower price-to-earnings ratio than Versus Systems, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
60.7% of SoundThinking shares are owned by institutional investors. Comparatively, 60.7% of Versus Systems shares are owned by institutional investors. 10.9% of SoundThinking shares are owned by company insiders. Comparatively, 0.2% of Versus Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares SoundThinking and Versus Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoundThinking | -16.92% | -23.77% | -12.90% |
| Versus Systems | N/A | -70.36% | -61.70% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for SoundThinking and Versus Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundThinking | 1 | 8 | 0 | 0 | 1.89 |
| Versus Systems | 1 | 0 | 0 | 0 | 1.00 |
SoundThinking presently has a consensus price target of $9.79, indicating a potential upside of 18.85%. Given SoundThinking’s stronger consensus rating and higher possible upside, analysts plainly believe SoundThinking is more favorable than Versus Systems.
Summary
SoundThinking beats Versus Systems on 7 of the 13 factors compared between the two stocks.
About SoundThinking
SoundThinking, Inc. is a public safety technology company that provides data-driven tools to help law enforcement and other public safety organizations detect, analyze and respond to crime. The company’s platform combines acoustic sensors, artificial intelligence, data analytics and investigative software to support emergency response, investigations and resource allocation. Its flagship ShotSpotter service uses a network of acoustic sensors and machine-learning technology to detect, locate and analyze suspected gunfire, helping agencies identify incidents that may not be reported through emergency calls.
About Versus Systems
Versus Systems Inc. is a technology company that developed an engagement and monetization platform for video games, mobile applications and other digital experiences. Its software was designed to allow brands, advertisers and content providers to offer real-world rewards, promotions and other incentives to users based on in-game or in-app activities. The company’s platform sought to connect game developers and publishers with consumer brands through customizable reward campaigns. Potential applications included product promotions, loyalty programs, sponsored challenges and interactive advertising, with rewards intended to encourage participation and increase user engagement.
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