Critical Comparison: I.D. Systems (IDSY) & Novume Solutions (NVMM)

I.D. Systems (NASDAQ:IDSY) and Novume Solutions (NASDAQ:NVMM) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Insider and Institutional Ownership

46.5% of I.D. Systems shares are held by institutional investors. Comparatively, 0.5% of Novume Solutions shares are held by institutional investors. 8.6% of I.D. Systems shares are held by insiders. Comparatively, 66.5% of Novume Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for I.D. Systems and Novume Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
I.D. Systems 0 0 5 0 3.00
Novume Solutions 0 0 1 0 3.00

I.D. Systems presently has a consensus target price of $9.32, suggesting a potential upside of 50.32%. Novume Solutions has a consensus target price of $4.75, suggesting a potential upside of 232.17%. Given Novume Solutions’ higher probable upside, analysts plainly believe Novume Solutions is more favorable than I.D. Systems.

Profitability

This table compares I.D. Systems and Novume Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
I.D. Systems -7.07% -9.52% -5.07%
Novume Solutions -18.26% -210.88% -38.39%

Earnings and Valuation

This table compares I.D. Systems and Novume Solutions’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
I.D. Systems $40.95 million 2.69 -$3.87 million N/A N/A
Novume Solutions $22.13 million 0.94 -$5.04 million N/A N/A

I.D. Systems has higher revenue and earnings than Novume Solutions.

Summary

I.D. Systems beats Novume Solutions on 8 of the 10 factors compared between the two stocks.

About I.D. Systems

I.D. Systems, Inc. develops, markets, and sells wireless machine-to-machine solutions primarily in North America. The company provides integrated wireless solutions that utilize radio frequency identification, Wi-Fi, satellite or cellular communications, sensor technologies, and software to control, monitor, track, and analyze industrial and rental vehicles, as well as transportation assets. It offers industrial truck asset management and connected vehicles products, including on-asset hardware with mounting and user-interface options that provide an autonomous means of asset control and monitoring; wireless asset managers that link the mobile assets being monitored with the customer's computer network or to a remotely hosted server; server software, which manages data communications between the system's database and wireless asset managers or on-asset hardware; and client software. It also offers transportation asset management products comprising on-asset hardware configurations to address various remote asset types; VeriWise Intelligence Portal, a hosted Website that provides Internet access to client asset information; and a direct data feed through XML or Web services. In addition, I.D. Systems, Inc. offers hardware and software solutions, as well as hosting, maintenance, and support and consulting services; and Software as a Service covering system monitoring, help desk technical support, escalation procedure development, routine diagnostic data analysis, and software updates services. The company markets and sells its wireless solutions directly to commercial and government sectors in automotive manufacturing, retail, shipping, freight transportation, heavy industry, wholesale distribution, aerospace and defense, homeland security, and vehicle rental markets, as well as through indirect sales channels, such as original equipment manufacturers and industrial equipment dealers. I.D. Systems, Inc. was founded in 1993 and is based in Woodcliff Lake, New Jersey.

About Novume Solutions

Novume Solutions, Inc., through its subsidiaries, provides consulting and technical support services to government contracting market in the United States. It offers market intelligence and opportunity identification, capture and strategic advisory, proposal strategy and development, teaming support, and managed human capital services to assist government contractors. The company also provides risk mitigation and crisis management services comprising predictive intelligence, business continuity, risk assessment, crisis management and communications, emergency and cyber incident response, behavioral risk and threat assessment, and workplace violence prevention. In addition, it offers BERTHA, a behavioral risk and threat assessment program, to identify early warning signs that may be exhibited by an individual before they are on a path to violence. Further, the company provides specialty staffing services, which include specialized contract personnel, temp-to-hire professionals, direct hires, and temporary or seasonal hires to the Department of Defense and various group of companies in the aerospace and aviation industry. Additionally, it offers compensation assessments, program maturity effectiveness, event impact management reviews, and IT resiliency and critical supply analyses services; and automated traffic safety enforcement solutions, including speed, red light, and move-over and distracted driving camera systems, as well as citation management software and secure electronic evidence storage systems. Novume Solutions, Inc. was founded in 2017 and is headquartered in Chantilly, Virginia.

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