Actelis Networks (NASDAQ:ASNS) and Knightscope (NASDAQ:KSCP) Critical Analysis

Knightscope (NASDAQ:KSCP) and Actelis Networks (NASDAQ:ASNS) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Knightscope and Actelis Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Knightscope	-284.42%	N/A	-129.83%
Actelis Networks	-56.82%	-752.62%	-45.14%

Volatility & Risk

Knightscope has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Actelis Networks has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500.

Insider and Institutional Ownership

14.6% of Knightscope shares are held by institutional investors. Comparatively, 12.4% of Actelis Networks shares are held by institutional investors. 15.4% of Knightscope shares are held by insiders. Comparatively, 5.5% of Actelis Networks shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Knightscope and Actelis Networks”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Knightscope	$12.80 million	2.62	-$22.12 million	($13.58)	-0.71
Actelis Networks	$7.72 million	1.04	-$6.29 million	($1.25)	-1.02

Actelis Networks has lower revenue, but higher earnings than Knightscope. Actelis Networks is trading at a lower price-to-earnings ratio than Knightscope, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Knightscope and Actelis Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Knightscope	0	0	2	0	3.00
Actelis Networks	0	0	1	0	3.00

Knightscope presently has a consensus price target of $16.50, indicating a potential upside of 70.98%. Actelis Networks has a consensus price target of $5.00, indicating a potential upside of 290.63%. Given Actelis Networks’ higher possible upside, analysts clearly believe Actelis Networks is more favorable than Knightscope.

Summary

Knightscope beats Actelis Networks on 7 of the 13 factors compared between the two stocks.

About Knightscope

Knightscope, Inc. designs, develops, manufactures, markets, deploys, and supports autonomous security robots (ASR) in the United States. Its products include K3 and K5 ASRs designed to roam a geo-fenced area autonomously by utilizing numerous sensors and lasers, either on a random basis or based on a particular patrolling algorithm to navigate around people, vehicles, and objects in dynamic indoor or outdoor environments; K1, an ASR for used in indoors or outdoors and at ingress/egress points for both people and vehicles; and K7, a multi-terrain ASR. The company also develops and operates the Knightscope security operations center (KSOC), a browser-based interface, which allows real-time data access service to its clients for alert of an abnormal event; and Knightscope network operations center (KNOC), a custom set of tools that enables it to manage and monitor the network of ASRs with alerts related to critical indicators and statistics, including charging, software, navigation, and temperatures, as well as to execute over-the-air software upgrades, patches, and other related items. In addition, it offers Knightscope+, a virtual monitoring and response solution that provides an alternative for client sites. The company serves airports, commercial real estate, corporate campus, homeowner associations, hotels, universities, municipalities, rail, healthcare, public parks, schools, casinos, corporations, logistics, manufacturing, law enforcement, Parking areas, municipalities, universities, and property management companies, as well as the U.S. federal government. Knightscope, Inc. was incorporated in 2013 and is headquartered in Mountain View, California.

About Actelis Networks

Actelis Networks, Inc. engages in the design, development, manufacture, and marketing of cyber hardened, hybrid fiber, networking solutions for Internet of Things and telecommunication companies in North America, Europe, the Middle East, Israel, and the Asia Pacific. It provides rapid-deployment networking solutions for wide-area IoT applications, including federal, state, and local governments; intelligent traffic systems; and military, utility, rail, telecom, and campus applications. The company’s products include ethernet access devices; network aggregator switches; and Advanced MetaLIGHT/ Gigaline element management systems software, which enables remote management, monitoring, maintenance, and configuration of the installed equipment in the network. It also offers dynamic spectral software; and access broadband equipment. It serves offers its products through system integrators, distributors, contractors, resellers, and consultants. The company was incorporated in 1998 and is headquartered in Fremont, California.