Critical Analysis: Digital Ally (DGLY) & Vuzix (VUZI)
Digital Ally (NASDAQ: DGLY) and Vuzix (NASDAQ:VUZI) are both small-cap industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Insider and Institutional Ownership
3.8% of Digital Ally shares are owned by institutional investors. Comparatively, 13.4% of Vuzix shares are owned by institutional investors. 19.8% of Digital Ally shares are owned by company insiders. Comparatively, 14.7% of Vuzix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Digital Ally and Vuzix’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digital Ally||$12.77 million||1.26||-$12.25 million||($1.50)||-1.50|
|Vuzix||$5.54 million||39.07||-$19.63 million||($1.02)||-7.76|
Digital Ally has higher revenue and earnings than Vuzix. Vuzix is trading at a lower price-to-earnings ratio than Digital Ally, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Digital Ally and Vuzix, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Digital Ally currently has a consensus target price of $4.50, indicating a potential upside of 100.00%. Vuzix has a consensus target price of $10.50, indicating a potential upside of 32.58%. Given Digital Ally’s higher possible upside, equities analysts clearly believe Digital Ally is more favorable than Vuzix.
This table compares Digital Ally and Vuzix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Digital Ally has a beta of 2.65, indicating that its stock price is 165% more volatile than the S&P 500. Comparatively, Vuzix has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.
Digital Ally beats Vuzix on 8 of the 14 factors compared between the two stocks.
About Digital Ally
Digital Ally, Inc. produces and sells digital video imaging and storage products for use in law enforcement, security, and commercial applications in the United States and internationally. Its digital audio/video recording, storage, and other products include an in-car digital audio/video recorder that is contained in a rear view mirror for law enforcement vehicles and commercial fleets; and hands-free automatic activated body-worn cameras and in-car video systems, as well as provides its law enforcement customers with audio/video surveillance from multiple vantage points. The company also provides VuLink, an in-car device that enables an in-car and body worn digital audio/video camera system to automatically and simultaneously start recording; and Digital Ally, a suite of data management Web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information. In addition, its digital audio/video recording, storage, and other products comprise a miniature body-worn digital video system; VuVault.net, a law enforcement cloud storage solution, including cloud-based fleet management and driver monitoring/training applications; and FleetVU Manager, a Web-based software for commercial fleet tracking and monitoring. The company sells its products through direct sales and third-party distributors. Digital Ally, Inc. is headquartered in Lenexa, Kansas.
Vuzix Corporation designs, manufactures, markets, and sells wearable display devices in the United States and internationally. Its wearable display products include augmented reality (AR) smart glasses for various enterprise and commercial users and applications; and video viewing glasses for on-the-go users as mobile displays for entertainment and gaming. The company's products also include binocular wearable displays that contain two micro displays mounted in a frame attached to eyeglass-style temples or stereo headphones; monocular smart glasses products for the enterprise, industrial, and commercial markets, as well as video headphones; AR wearable products, which provide users with a live, direct, or indirect view of a physical real-world environment. Its products are worn as eyeglasses that enable the user to view video and digital content, such as movies, computer data, the Internet, or video games. In addition, it offers an app store on its Websites where users can download and purchase applications, including third party applications; VUZIX Basics, an application that provides the fundamental benefits of smart glasses to users; and VUZIX Basics Video provides remote telepresence capabilities. Further, the company provides waveguide optics and design reference kits, and custom and engineering solutions. Vuzix Corporation offers its products directly to consumers, as well as through specialty retailers, online retailers, distributors, value added resellers, and Webstores. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in 2007. Vuzix Corporation was founded in 1997 and is headquartered in West Henrietta, New York.
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