Digital Ally (NASDAQ: DGLY) and QUALCOMM (NASDAQ:QCOM) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Valuation & Earnings

This table compares Digital Ally and QUALCOMM’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digital Ally $12.77 million 1.40 -$12.25 million ($1.50) -1.67
QUALCOMM $22.29 billion 4.29 $2.47 billion $3.78 17.22

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

Dividends

QUALCOMM pays an annual dividend of $2.48 per share and has a dividend yield of 3.8%. Digital Ally does not pay a dividend. QUALCOMM pays out 65.6% of its earnings in the form of a dividend. QUALCOMM has increased its dividend for 7 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Digital Ally and QUALCOMM, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital Ally 0 1 1 0 2.50
QUALCOMM 1 11 10 0 2.41

Digital Ally currently has a consensus price target of $4.50, suggesting a potential upside of 80.00%. QUALCOMM has a consensus price target of $65.94, suggesting a potential upside of 1.32%. Given Digital Ally’s stronger consensus rating and higher probable upside, research analysts clearly believe Digital Ally is more favorable than QUALCOMM.

Risk & Volatility

Digital Ally has a beta of 2.66, suggesting that its share price is 166% more volatile than the S&P 500. Comparatively, QUALCOMM has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Institutional & Insider Ownership

4.1% of Digital Ally shares are held by institutional investors. Comparatively, 77.5% of QUALCOMM shares are held by institutional investors. 19.8% of Digital Ally shares are held by company insiders. Comparatively, 0.2% of QUALCOMM shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Digital Ally and QUALCOMM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital Ally -108.35% -531.26% -75.46%
QUALCOMM -18.41% 19.06% 7.56%

Summary

QUALCOMM beats Digital Ally on 12 of the 17 factors compared between the two stocks.

Digital Ally Company Profile

Digital Ally, Inc. produces and sells digital video imaging and storage products for use in law enforcement, security, and commercial applications in the United States and internationally. Its digital audio/video recording, storage, and other products include an in-car digital audio/video recorder that is contained in a rear view mirror for law enforcement vehicles and commercial fleets; and hands-free automatic activated body-worn cameras and in-car video systems, as well as provides its law enforcement customers with audio/video surveillance from multiple vantage points. The company also provides VuLink, an in-car device that enables an in-car and body worn digital audio/video camera system to automatically and simultaneously start recording; and Digital Ally, a suite of data management Web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information. In addition, its digital audio/video recording, storage, and other products comprise a miniature body-worn digital video system; VuVault.net, a law enforcement cloud storage solution, including cloud-based fleet management and driver monitoring/training applications; and FleetVU Manager, a Web-based software for commercial fleet tracking and monitoring. The company sells its products through direct sales and third-party distributors. Digital Ally, Inc. is headquartered in Lenexa, Kansas.

QUALCOMM Company Profile

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, wideband CDMA, CDMA time division duplex, and/or long term evolution standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including automotive, Internet of things, mobile, data center, and healthcare for supporting the design and introduction of new products and services for voice and data communications, and new industry segments. The company also provides products and services for mobile health; products designed for the implementation of small cells; development, and other services and related products to the United States government agencies and their contractors; and software products, and content and push-to-talk enablement services to wireless operators. In addition, it licenses chipset technology, and products and services for use in data centers. QUALCOMM Incorporated was founded in 1985 and is headquartered in San Diego, California.

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