Shotspotter (NASDAQ:SSTI) and Debt Resolve (OTCMKTS:DRSV) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.
This table compares Shotspotter and Debt Resolve’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Shotspotter and Debt Resolve, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shotspotter currently has a consensus price target of $52.26, indicating a potential upside of 21.20%. Given Shotspotter’s higher possible upside, analysts clearly believe Shotspotter is more favorable than Debt Resolve.
Institutional and Insider Ownership
55.7% of Shotspotter shares are held by institutional investors. Comparatively, 0.3% of Debt Resolve shares are held by institutional investors. 36.1% of Shotspotter shares are held by company insiders. Comparatively, 56.1% of Debt Resolve shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Shotspotter and Debt Resolve’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shotspotter||$34.75 million||13.54||-$2.72 million||($0.26)||-165.85|
|Debt Resolve||$4.43 million||0.06||-$1.77 million||N/A||N/A|
Debt Resolve has lower revenue, but higher earnings than Shotspotter.
Volatility and Risk
Shotspotter has a beta of 2.82, suggesting that its stock price is 182% more volatile than the S&P 500. Comparatively, Debt Resolve has a beta of -3.02, suggesting that its stock price is 402% less volatile than the S&P 500.
Shotspotter beats Debt Resolve on 6 of the 11 factors compared between the two stocks.
ShotSpotter, Inc. provides software-as-a-service based gunshot detection solutions for law enforcement officials and security personnel in the United States, South Africa, and internationally. The company's solutions include ShotSpotter Flex, an outdoor public safety solution for cities and municipalities to identify, locate, and deter gun violence by incorporating a real-time gunshot detection system into their policing systems; and SST SecureCampus that helps the law enforcement and security personnel serving universities, colleges, and other educational institutions to mitigate risk and enhance security by notifying authorities and first responders of an active-shooter. It also provides ShotSpotter SiteSecure, which serves various customers, such as corporations to safeguard their facilities; and public agencies focused on protecting critical infrastructure, including train stations, airports, and freeways. The company serves public safety customers and higher-education campuses through direct sales teams. ShotSpotter, Inc. was founded in 1996 and is headquartered in Newark, California.
About Debt Resolve
Debt Resolve, Inc. provides software solutions to consumer lenders or those collecting consumer loans using Software-as-a-Service model in the United States. Its solutions facilitate Web-based payments or the resolution of delinquent or defaulted consumer debt. The company also provides services in the student loan document preparation industry. It serves consumer banks, collection agencies, and the buyers of defaulted debt. The company was formerly known as Lombardia Acquisition Corp. and changed its name to Debt Resolve, Inc. in May 2003. Debt Resolve, Inc. was founded in 1997 and is based in Hawthorne, New York.
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