SoundThinking (NASDAQ:SSTI – Get Free Report) and Versus Systems (NASDAQ:VS – Get Free Report) are both small-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Institutional and Insider Ownership
60.7% of SoundThinking shares are owned by institutional investors. Comparatively, 60.7% of Versus Systems shares are owned by institutional investors. 10.9% of SoundThinking shares are owned by insiders. Comparatively, 0.2% of Versus Systems shares are owned by 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.
Profitability
This table compares SoundThinking and Versus Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoundThinking | -16.92% | -23.77% | -12.90% |
| Versus Systems | N/A | -70.36% | -61.70% |
Earnings and Valuation
This table compares SoundThinking and Versus Systems”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundThinking | $97.96 million | 1.10 | -$9.42 million | ($1.29) | -6.45 |
| Versus Systems | $2.18 million | 2.56 | -$1.79 million | ($0.35) | -2.57 |
Versus Systems has lower revenue, but higher earnings than SoundThinking. SoundThinking is trading at a lower price-to-earnings ratio than Versus Systems, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and price targets for SoundThinking and Versus Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundThinking | 1 | 8 | 0 | 0 | 1.89 |
| Versus Systems | 1 | 0 | 0 | 0 | 1.00 |
SoundThinking presently has a consensus target price of $9.79, indicating a potential upside of 17.69%. Given SoundThinking’s stronger consensus rating and higher possible upside, analysts plainly believe SoundThinking is more favorable than Versus Systems.
Risk and Volatility
SoundThinking has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Versus Systems has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
Summary
SoundThinking beats Versus Systems on 7 of the 13 factors compared between the two stocks.
About SoundThinking
SoundThinking, Inc., a public safety technology company that provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform, an integrated suite of data-driven tools that enable law enforcement and community violence prevention and health organizations to be efficient in public safety outcomes. It offers ShotSpotter, an acoustic gunshot detection system; CrimeTracer, a law enforcement search engine; CaseBuilder, an investigation management system; and ResourceRouter, a software that directs patrol and community anti-violence resources to help maximize their impact. The company sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.
About Versus Systems
Versus Systems Inc. develops and operates a business-to-business software platform in the United States and Canada. The company offers eXtreme Engagement Online platform that is designed primarily for in-venue main-board work in stadiums and arenas; Filter Fan Cam (FFC) platform, an augmented reality filtering tool that can be used for mobile and in-venue applications; and Winfinite, which allows brands, media companies, and advertising agencies to reach out to customers directly on their mobile devices. It also offers business-to-business software platform that allows video game publishers, developers, and other interactive media content creators in-game prizing and rewards based on the completion of in-content challenges. In addition, the company provides XEO technology platform that offers online audience engagement. It primarily sells its access to platform and service offerings through its direct sales organization. Versus Systems Inc. is headquartered in Vancouver, Canada.
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