Critical Review: Wrap Technologies (NASDAQ:WRAP) vs. FTAI Aviation (NASDAQ:FTAI)

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

Institutional and Insider Ownership

8.8% of Wrap Technologies shares are owned by institutional investors. Comparatively, 89.0% of FTAI Aviation shares are owned by institutional investors. 33.3% of Wrap Technologies shares are owned by company insiders. Comparatively, 1.4% of FTAI Aviation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Wrap Technologies and FTAI Aviation”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wrap Technologies	$4.67 million	18.23	-$10.34 million	($0.27)	-5.63
FTAI Aviation	$2.51 billion	7.81	$501.06 million	$4.60	41.47

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

Profitability

This table compares Wrap Technologies and FTAI Aviation’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%
FTAI Aviation	15.94%	139.59%	11.26%

Volatility & Risk

Wrap Technologies has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, FTAI Aviation has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Wrap Technologies and FTAI Aviation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wrap Technologies	1	0	0	0	1.00
FTAI Aviation	0	2	9	0	2.82

FTAI Aviation has a consensus price target of $315.67, indicating a potential upside of 65.50%. Given FTAI Aviation’s stronger consensus rating and higher probable upside, analysts clearly believe FTAI Aviation is more favorable than Wrap Technologies.

Summary

FTAI Aviation beats Wrap Technologies on 12 of the 14 factors compared between the two stocks.

About Wrap Technologies

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company's flagship product is BolaWrap 150, a handheld remote restraint device that discharges a seven and a half-foot Kevlar tether, entangling an individual from a range of 10-25 feet. It also offers virtual reality training system, a law enforcement 3D training system employing immersive computer graphics VR with proprietary software-enabled content. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 2007 and is based in Tempe, Arizona.

About FTAI Aviation

FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers. As of December 31, 2023, this segment owned and managed 363 aviation assets consisting of 96 commercial aircraft and 267 engines, including eight aircraft and seventeen engines that were located in Russia. The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines. The company was founded in 2011 and is headquartered in New York, New York.