Critical Review: Fuse Science (OTCMKTS:DROP) and Intelligent Protection Management (NASDAQ:IPM)

Fuse Science (OTCMKTS:DROP) and Intelligent Protection Management (NASDAQ:IPM) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Volatility & Risk

Fuse Science has a beta of 2.61, indicating that its share price is 161% more volatile than the S&P 500. Comparatively, Intelligent Protection Management has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500.

Insider and Institutional Ownership

3.9% of Intelligent Protection Management shares are held by institutional investors. 7.2% of Fuse Science shares are held by company insiders. Comparatively, 19.3% of Intelligent Protection Management shares are held by company 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.

Profitability

This table compares Fuse Science and Intelligent Protection Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fuse Science	N/A	N/A	N/A
Intelligent Protection Management	-38.38%	-15.29%	-10.52%

Earnings and Valuation

This table compares Fuse Science and Intelligent Protection Management”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fuse Science	N/A	N/A	N/A	N/A	N/A
Intelligent Protection Management	$1.10 million	14.79	-$8.43 million	($0.10)	-17.90

Fuse Science has higher earnings, but lower revenue than Intelligent Protection Management.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Fuse Science and Intelligent Protection Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fuse Science	0	0	0	0	0.00
Intelligent Protection Management	1	0	1	0	2.00

Intelligent Protection Management has a consensus price target of $6.00, suggesting a potential upside of 235.20%. Given Intelligent Protection Management’s stronger consensus rating and higher probable upside, analysts plainly believe Intelligent Protection Management is more favorable than Fuse Science.

Summary

Intelligent Protection Management beats Fuse Science on 6 of the 10 factors compared between the two stocks.

About Fuse Science

Fuse Science, Inc. operates a cloud-based customer service software platform. The company also produces and sells sports nutrition and performance products. Its products include SkyPorts, a drone support technology and energy demand network that enables long distance flight required for drone-based commerce without the need for drones to return every 15 minutes to recharge; and XTRAX, a remote monitoring system designed to measure the production of solar and other renewable energy systems, as well as transmit the data via the cellular and radio frequency. The company was formerly known as Double Eagle Holdings, Ltd. and changed its name to Fuse Science, Inc. in December 2011. Fuse Science, Inc. was incorporated in 1988 and is based in Jacksonville, Florida.

About Intelligent Protection Management

Intelligent Protection Management Corp. engages in the development of communications software to enhance security and privacy solutions for multimedia communication and data transmission. Its solutions include blockchain strategy consulting, blockchain implementation, white label video solutions, and technology licensing. The firm’s product portfolio includes Paltalk and Camfrog. The company was founded by Clifford Lerner and Darrell Lerner on July 19, 2005 and is headquartered in Jericho, NY.