Financial Survey: Wrap Technologies (NASDAQ:WRAP) versus Axon Enterprise (NASDAQ:AXON)

Wrap Technologies (NASDAQ:WRAP) and Axon Enterprise (NASDAQ:AXON) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Wrap Technologies and Axon Enterprise, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wrap Technologies 0 0 2 0 3.00
Axon Enterprise 0 1 4 1 3.00

Wrap Technologies presently has a consensus price target of $18.75, indicating a potential upside of 124.28%. Axon Enterprise has a consensus price target of $176.80, indicating a potential upside of 17.30%. Given Wrap Technologies’ higher probable upside, equities analysts plainly believe Wrap Technologies is more favorable than Axon Enterprise.

Profitability

This table compares Wrap Technologies and Axon Enterprise’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wrap Technologies -326.52% -36.22% -34.27%
Axon Enterprise -7.37% -6.05% -4.28%

Risk & Volatility

Wrap Technologies has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, Axon Enterprise has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Earnings and Valuation

This table compares Wrap Technologies and Axon Enterprise’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wrap Technologies $3.94 million 80.52 -$12.58 million ($0.37) -22.59
Axon Enterprise $681.00 million 14.32 -$1.72 million $0.11 1,370.18

Axon Enterprise has higher revenue and earnings than Wrap Technologies. Wrap Technologies is trading at a lower price-to-earnings ratio than Axon Enterprise, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

14.1% of Wrap Technologies shares are owned by institutional investors. Comparatively, 74.9% of Axon Enterprise shares are owned by institutional investors. 54.5% of Wrap Technologies shares are owned by company insiders. Comparatively, 2.3% of Axon Enterprise shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Axon Enterprise beats Wrap Technologies on 9 of the 14 factors compared between the two stocks.

About Wrap Technologies

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company develops BolaWrap 100, a hand-held remote restraint device that discharges an eight-foot bola style Kevlar tether to entangle a subject at a range of 10-25 feet. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 2016 and is headquartered in Tempe, Arizona.

About Axon Enterprise

Axon Enterprise, Inc. develops, manufactures, and sells conducted energy weapons (CEWs) under the TASER brand in the United States and internationally. It operates through two segments, TASER and Software and Sensors. The company offers TASER X26P, TASER X2, TASER 7, and TASER Pulse CEWs; and related cartridges. It also provides on-officer body cameras and Axon Fleet in-car video systems; and Axon Evidence digital evidence management software; Axon Records, a cloud-based records management system; Axon Signal enabled devices; and computer-aided dispatch software, as well as Axon docks, cartridges, and batteries. In addition, the company offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence. It sells its products through its direct sales force, distribution partners, online store, and third-party resellers. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. in April 2017. Axon Enterprise, Inc. was incorporated in 1993 and is headquartered in Scottsdale, Arizona.

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