Financial Comparison: Rheinmetall (OTCMKTS:RNMBY) & Wrap Technologies (NASDAQ:WRAP)

Wrap Technologies (NASDAQ:WRAP) and Rheinmetall (OTCMKTS:RNMBY) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Earnings & Valuation

This table compares Wrap Technologies and Rheinmetall”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wrap Technologies	$4.67 million	18.10	-$10.34 million	($0.27)	-4.70
Rheinmetall	$11.24 billion	3.69	$787.45 million	$2.91	61.05

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

Risk & Volatility

Wrap Technologies has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Rheinmetall has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Wrap Technologies and Rheinmetall, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wrap Technologies	1	0	0	0	1.00
Rheinmetall	0	3	5	0	2.62

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wrap Technologies	-205.10%	-101.24%	-82.26%
Rheinmetall	7.51%	23.98%	7.31%

Institutional and Insider Ownership

8.8% of Wrap Technologies shares are owned by institutional investors. 33.3% of Wrap Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Rheinmetall beats Wrap Technologies on 9 of the 13 factors compared between the two stocks.

About Wrap Technologies

Wrap Technologies, Inc. is a public safety technology company that develops products and services for law enforcement, corrections, security, behavioral health and other organizations. Its solutions are designed to help personnel manage potentially combative or uncooperative individuals while reducing the need for close physical contact and traditional uses of force. The company’s primary product is BolaWrap, a handheld remote-restraint device that deploys a tether intended to temporarily restrain a person from a distance.

About Rheinmetall

Rheinmetall AG is a German technology group focused on defense and mobility. Its defense business develops and supplies military vehicles, weapons, ammunition, air-defense systems, sensors and electronic solutions for armed forces and government customers. The company also has a Power Systems business serving the automotive and industrial sectors. Its products include components and systems for vehicles and other applications, alongside technologies related to electrification and energy efficiency.