Comparing Zentek (NASDAQ:ZTEK) and Alarum Technologies (NASDAQ:ALAR)

Alarum Technologies (NASDAQ:ALAR) and Zentek (NASDAQ:ZTEK) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Alarum Technologies and Zentek, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarum Technologies	1	1	1	0	2.00
Zentek	1	0	0	0	1.00

Alarum Technologies currently has a consensus target price of $14.00, suggesting a potential upside of 669.23%. Given Alarum Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Alarum Technologies is more favorable than Zentek.

Profitability

This table compares Alarum Technologies and Zentek’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alarum Technologies	2.53%	17.11%	12.65%
Zentek	-5,848.76%	-81.95%	-57.78%

Institutional & Insider Ownership

3.2% of Alarum Technologies shares are held by institutional investors. Comparatively, 0.8% of Zentek shares are held by institutional investors. 2.7% of Alarum Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarum Technologies	$40.76 million	0.33	$960,000.00	$0.16	11.38
Zentek	$120,000.00	696.41	-$7.07 million	($0.07)	-9.43

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

Risk and Volatility

Alarum Technologies has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Zentek has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Summary

Alarum Technologies beats Zentek on 13 of the 14 factors compared between the two stocks.

About Alarum Technologies

Alarum Technologies Ltd. provides internet access and web data collection solutions in North, South, and Central America, Europe, Southeast Asia, the Middle East, and Africa. The company operates through two segments, Enterprise Internet Access Solutions and Consumer Internet Access Solutions. The company offers security blanket against ransomware, viruses, phishing, and other online threats, as well as secured and encrypted connection, masking the customers online activity and keeping them safe from hackers. It also provides privacy solutions and services, a software solution that uses an encryption protocol which is defined upon the process being used to generate a secured encrypted path and keep the users' data private and safe; and web data collection solution allows organizations to collect vast amounts of web and internet data by simultaneously connecting to the Internet from different IP addresses. In addition, the company offers static residential proxy network, rotating residential proxy network, data center proxy network, premium dedicated static residential proxies, mobile proxies, SERP data collection service, and social data collection service, as well as advertising services to enterprise customers. The company offers its products through resellers and internet service providers. It serves advertising and media companies, financial organizations, cyber security companies, industrial and commercial companies, online companies, education institutions, and AI recruitment market and other sectors. The company was formerly known as Safe-T Group Ltd. and changed its name to Alarum Technologies Ltd. in January 2023. Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv, Israel.

About Zentek

Zentek Ltd., together with its subsidiaries, engages in the research and development of graphene and related nanomaterials in Canada. The company develops graphene-based antimicrobial coating under the ZenGUARD brand, surgical masks, HVAC filters, personal protective equipment, rapid detection point of care diagnostics tests, and pharmaceutical products based on graphene-based compounds. It is also developing graphene oxide synthesis and graphene synthesis. In addition, the company owns 100% interest in the Albany graphite project located in Northern Ontario, Canada. The company was formerly known as ZEN Graphene Solutions Ltd. and changed its name to Zentek Ltd. in October 2021. Zentek Ltd. was incorporated in 2008 and is headquartered in Guelph, Canada.