Head-To-Head Review: Guardforce AI (NASDAQ:GFAI) vs. WISeKey International (NASDAQ:WKEY)

WISeKey International (NASDAQ:WKEY) and Guardforce AI (NASDAQ:GFAI) are both small-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for WISeKey International and Guardforce AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WISeKey International	1	0	2	0	2.33
Guardforce AI	1	0	1	0	2.00

WISeKey International currently has a consensus target price of $10.50, indicating a potential downside of 22.11%. Guardforce AI has a consensus target price of $4.50, indicating a potential upside of 425.21%. Given Guardforce AI’s higher possible upside, analysts clearly believe Guardforce AI is more favorable than WISeKey International.

Institutional and Insider Ownership

0.3% of WISeKey International shares are held by institutional investors. Comparatively, 2.0% of Guardforce AI shares are held by institutional investors. 33.5% of WISeKey International shares are held by insiders. Comparatively, 76.7% of Guardforce AI shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

WISeKey International has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Guardforce AI has a beta of 2.49, meaning that its stock price is 149% more volatile than the S&P 500.

Earnings & Valuation

This table compares WISeKey International and Guardforce AI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WISeKey International	$11.99 million	9.17	-$13.45 million	N/A	N/A
Guardforce AI	$36.35 million	0.42	-$5.86 million	N/A	N/A

Guardforce AI has higher revenue and earnings than WISeKey International.

Profitability

This table compares WISeKey International and Guardforce AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WISeKey International	N/A	N/A	N/A
Guardforce AI	N/A	N/A	N/A

Summary

Guardforce AI beats WISeKey International on 6 of the 9 factors compared between the two stocks.

About WISeKey International

WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates in two segments, IoT and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, it engages in financing, sales, and distribution activities; and sells semiconductors secure chips. The company was founded in 1999 and is headquartered in Zug, Switzerland.

About Guardforce AI

Guardforce AI Co., Limited offers cash solutions and cash handling services in Thailand. The company operates through four segments: Secured Logistics Business, General Security Solutions, Robotics Solution Business, and Information Security Business. Its services include cash-in-transit, vehicles to banks, ATM management, cash center operations, cash processing, coin processing, consolidate cash center, and cheque center services, as well as cash deposit machine solutions, such as cash deposit management and express cash services. The company also sells and rents robots; and sells and installs Rapid7 software, as well as provision of integrated alarm security system installation, PCI ASV scan, and penetration testing services. Its customers include local commercial banks, chain retailers, coin manufacturing mints, and government authorities. The company was founded in 1982 and is based in Singapore.