Head to Head Contrast: SoundThinking (NASDAQ:SSTI) and Rectitude (NASDAQ:RECT)

SoundThinking (NASDAQ:SSTI) and Rectitude (NASDAQ:RECT) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for SoundThinking and Rectitude, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoundThinking	1	2	5	0	2.50
Rectitude	1	0	0	0	1.00

SoundThinking presently has a consensus price target of $17.67, indicating a potential upside of 182.89%. Given SoundThinking’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SoundThinking is more favorable than Rectitude.

Profitability

This table compares SoundThinking and Rectitude’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoundThinking	-9.74%	-13.76%	-7.36%
Rectitude	N/A	N/A	N/A

Insider & Institutional Ownership

60.7% of SoundThinking shares are owned by institutional investors. 10.4% of SoundThinking shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares SoundThinking and Rectitude”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoundThinking	$102.75 million	0.77	-$9.18 million	($0.84)	-7.43
Rectitude	$32.57 million	0.88	$1.66 million	N/A	N/A

Rectitude has lower revenue, but higher earnings than SoundThinking.

Volatility and Risk

SoundThinking has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Rectitude has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500.

Summary

SoundThinking beats Rectitude on 7 of the 12 factors compared between the two stocks.

About SoundThinking

SoundThinking, Inc., a public safety technology company that provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform, an integrated suite of data-driven tools that enable law enforcement and community violence prevention and health organizations to be efficient in public safety outcomes. It offers ShotSpotter, an acoustic gunshot detection system; CrimeTracer, a law enforcement search engine; CaseBuilder, an investigation management system; and ResourceRouter, a software that directs patrol and community anti-violence resources to help maximize their impact. The company sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.

About Rectitude

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.