Validian (OTCMKTS:VLDI) & Rekor Systems (NASDAQ:REKR) Critical Analysis

Rekor Systems (NASDAQ:REKR) and Validian (OTCMKTS:VLDI) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Valuation and Earnings

This table compares Rekor Systems and Validian”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rekor Systems	$48.45 million	1.77	-$31.46 million	($0.23)	-2.72
Validian	N/A	N/A	N/A	N/A	N/A

Validian has lower revenue, but higher earnings than Rekor Systems.

Institutional and Insider Ownership

45.7% of Rekor Systems shares are held by institutional investors. 3.2% of Rekor Systems shares are held by insiders. Comparatively, 28.3% of Validian shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Rekor Systems and Validian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rekor Systems	-60.48%	-80.28%	-36.87%
Validian	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations for Rekor Systems and Validian, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rekor Systems	1	0	0	0	1.00
Validian	0	0	0	0	0.00

Given Validian’s higher probable upside, analysts plainly believe Validian is more favorable than Rekor Systems.

Summary

Validian beats Rekor Systems on 5 of the 8 factors compared between the two stocks.

About Rekor Systems

Rekor Systems, Inc., a technology company, provides infrastructure solutions for transportation, public safety, and urban mobility markets in the United States and internationally. The company's platforms include Rekor One, an AI-powered roadway intelligence platform; Rekor Command, a comprehensive cross-agency platform that offers various applications for traffic management centers, freeway service patrol, first responders, and maintenance crews; Rekor Discover, a platform that ingests data from its hardware and automates comprehensive analytics and actionable insights about the movement of objects across the roadway; and Rekor Scout platform, which automates previously manual processes with collaborative solutions that keep all stakeholders apprised of developing situations and accelerate reaction times to incidents and offenders. It also offers Rekor AutoNotice, a cloud-based financial management application that delivers a turnkey information and citation management solution for cities, states, and municipalities for primary and secondary offenses; and Rekor CarCheck, which allows its AI based vehicle and license plate recognition technology to be accessed for a range of commercial applications. In addition, the company offers Rekor Edge Max System, a fixed traffic data collection system that captures and transforms roadway data into holistic traffic insights; Rekor Edge Pro, a vehicle recognition solution that is used on a standalone basis or integrated into a network; and Rekor Edge Flex, a portable data collection system. Further, it provides traffic services, including traditional traffic studies, which delivers data and insights for planning and management of roadway infrastructure and commercial initiatives; innovative AI-driven traffic studies for traffic management; and traffic engineering services. The company was incorporated in 2017 and is headquartered in Columbia, Maryland.

About Validian

Validian Corporation, a development stage company, provides software products to assist public and private enterprises in Canada and internationally. The company primarily offers ValidianProtect, a software only cyber security technology comprising an application and data protection platform and a data protection module, which protect the life cycle of data by providing secure access, retrieval, transfer, receipt, storage, and usage of digital information on mobile, cloud, Web, local and network applications, devices, servers, databases, and memory at rest, as well as in transit and in usage using wired, and wireless and mobile networks. Its ValidianProtect also provides secure mobile messaging and communications, cloud computing, cloud storage, distributed computing and Web application and Web portal access and usage, software defined networking, and the Internet of Things and SCADA for computers, servers, databases, intelligent sensors, and tablets and smartphones. In addition, the company offers solutions customized to the client's business process to ensure authenticity, integrity, and custody of digital assets. It offers its products through direct sales, as well as through channel partners, such as independent software vendors, application service providers, value-added resellers, independent marketing representatives, system integrators, and original equipment manufacturers. The company was formerly known as Sochrys.com Inc. and changed its name to Validian Corporation in January 2003. Validian Corporation was incorporated in 1989 and is based in Ottawa, Canada.