Red Cat (NASDAQ:RCAT – Get Free Report) and Safe Pro Group (NASDAQ:SPAI – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Insider and Institutional Ownership
38.0% of Red Cat shares are owned by institutional investors. 12.5% of Red Cat shares are owned by company insiders. Comparatively, 54.8% of Safe Pro Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings for Red Cat and Safe Pro Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Red Cat | 1 | 1 | 5 | 2 | 2.89 |
| Safe Pro Group | 1 | 1 | 1 | 1 | 2.50 |
Volatility and Risk
Red Cat has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Safe Pro Group has a beta of 3.66, meaning that its share price is 266% more volatile than the S&P 500.
Earnings & Valuation
This table compares Red Cat and Safe Pro Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Red Cat | $40.73 million | 25.22 | -$72.07 million | ($0.81) | -10.33 |
| Safe Pro Group | $610,000.00 | 163.55 | -$14.32 million | ($0.73) | -6.71 |
Safe Pro Group has lower revenue, but higher earnings than Red Cat. Red Cat is trading at a lower price-to-earnings ratio than Safe Pro Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Red Cat and Safe Pro Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Red Cat | -136.26% | -32.25% | -28.48% |
| Safe Pro Group | -500.00% | -107.61% | -97.54% |
Summary
Red Cat beats Safe Pro Group on 8 of the 15 factors compared between the two stocks.
About Red Cat
Red Cat Holdings, Inc. engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment. Red Cat Holdings, Inc. is based in San Juan, Puerto Rico.
About Safe Pro Group
Safe Pro Group, Inc. engages in the provision and acquisition of security and protection products. Its products include Artificial Intelligence (AI) and Machine Learning (ML) software technology and photogrammetry analysis tools, bullet and blast resistant personal protection equipment, and aerial managed services and mission-critical uncrewed solutions. The firm operates through the following segments: Safe-PRO USA, Airborne Response, and Safe Pro AI. The company was founded by Daniyel Erdberg on December 15, 2021 and is headquartered in Aventura, FL.
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