Analyzing AEye (NASDAQ:LIDR) and NAPCO Security Technologies (NASDAQ:NSSC)

AEye (NASDAQ:LIDR) and NAPCO Security Technologies (NASDAQ:NSSC) are both small-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Profitability

This table compares AEye and NAPCO Security Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AEye	-7,786.44%	-42.98%	-38.52%
NAPCO Security Technologies	21.27%	31.41%	26.06%

Institutional & Insider Ownership

21.6% of AEye shares are owned by institutional investors. Comparatively, 85.1% of NAPCO Security Technologies shares are owned by institutional investors. 11.9% of AEye shares are owned by insiders. Comparatively, 5.7% of NAPCO Security Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares AEye and NAPCO Security Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AEye	$230,000.00	238.51	-$33.96 million	($0.87)	-1.36
NAPCO Security Technologies	$202.32 million	6.36	$43.03 million	$1.21	29.72

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

Volatility & Risk

AEye has a beta of 2.83, meaning that its share price is 183% more volatile than the S&P 500. Comparatively, NAPCO Security Technologies has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for AEye and NAPCO Security Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AEye	1	0	1	0	2.00
NAPCO Security Technologies	0	2	6	0	2.75

AEye presently has a consensus price target of $3.50, indicating a potential upside of 196.61%. NAPCO Security Technologies has a consensus price target of $50.40, indicating a potential upside of 40.16%. Given AEye’s higher possible upside, equities analysts plainly believe AEye is more favorable than NAPCO Security Technologies.

Summary

NAPCO Security Technologies beats AEye on 10 of the 14 factors compared between the two stocks.

About AEye

AEye, Inc., together with its subsidiaries, provides lidar systems for vehicle autonomy, advanced driver-assistance systems, and robotic vision applications in the United States, Europe, and Asia-Pacific. It offers 4Sight intelligent sensing lidar platform, including 4Sight at Design, Triggered 4Sight, Responsive 4Sight, and Predictive 4Sight; and 4Sight for automotive and industrial market. The company was formerly known as CF Finance Acquisition Corp. III and changed its name to AEye, Inc. in August 2021. AEye, Inc. was founded in 2013 and is headquartered in Dublin, California.

About NAPCO Security Technologies

Napco Security Technologies, Inc. develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company’s alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.