Financial Analysis: Intrusion (OTCMKTS:INTZ) versus BIO-key International (OTCMKTS:BKYI)

BIO-key International (NASDAQ:BKYI) and Intrusion (OTCMKTS:INTZ) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for BIO-key International and Intrusion, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BIO-key International 0 0 1 0 3.00
Intrusion 0 0 0 0 N/A

BIO-key International presently has a consensus price target of $4.00, indicating a potential upside of 222.58%. Given BIO-key International’s higher probable upside, analysts plainly believe BIO-key International is more favorable than Intrusion.

Profitability

This table compares BIO-key International and Intrusion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BIO-key International -172.60% -60.41% -53.38%
Intrusion 25.78% -89.26% 87.34%

Earnings & Valuation

This table compares BIO-key International and Intrusion’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BIO-key International $4.05 million 4.31 -$6.87 million N/A N/A
Intrusion $10.28 million 6.58 $2.29 million N/A N/A

Intrusion has higher revenue and earnings than BIO-key International.

Insider & Institutional Ownership

1.8% of BIO-key International shares are owned by institutional investors. Comparatively, 1.3% of Intrusion shares are owned by institutional investors. 34.1% of BIO-key International shares are owned by insiders. Comparatively, 36.1% of Intrusion shares are owned 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.

Risk & Volatility

BIO-key International has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500. Comparatively, Intrusion has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Summary

Intrusion beats BIO-key International on 6 of the 11 factors compared between the two stocks.

About BIO-key International

BIO-key International, Inc. develops and markets fingerprint biometric identification and identity verification technologies, authentication-transaction security technologies, and related identity management and credentialing biometric hardware and software solutions. Its solutions enable application developers, value added resellers, and channel partners to integrate fingerprint biometrics into their applications. The company's products include Vector Segment Technology SDK, a biometric software development kit that provides developers the ability to incorporate its biometric capabilities into their respective product offerings or infrastructure; Intelligent Image Indexing, a biometric identification solution that offers one-to-many and one-to-one user identification; and Biometric Service Provider, which provides support for the BioAPI for a compliant interface to applications using biometrics for verification and identification. Its products also comprise ID Director, a solution for single sign on integration with CA Technologies SiteMinder, Oracle's Fusion Middleware SSO, IBM Tivoli Access Manager, and other solutions; and WEB-key, an authentication-transaction security technology to conduct identification and identity verification transactions in insecure environments, such as the world wide Web or off-site cloud environments. The company also sells third-party hardware components. BIO-key International, Inc. markets its products through its direct sales force, as well as through distributors, resellers, integrators, and partner networks to government and corporate customers primarily in North America. It has strategic partnership with Quantum Business Advisory to bring its software and hardware solutions to enterprises in India. The company was formerly known as SAC Technologies and changed its name to BIO-key International, Inc. in 2002. BIO-key International, Inc. was founded in 1993 and is headquartered in Wall, New Jersey.

About Intrusion

Intrusion Inc. develops, markets, and supports entity identification, high speed data mining, cybercrime and advanced persistent threat detection, regulated information compliance, and data privacy protection products in the United States. Its product portfolio comprises TraceCop, which includes a database of worldwide IP addresses that aid in the identification and location of individuals involved in cybercrime, and analysis software and a GUI interface to assist analysts in locating cybercriminals and other bad guys; and Savant, a high-speed network data mining product that organizes the data into networks of relationships and associations. The company also offers Compliance Commander for regulated information and data privacy protection. In addition, it resells third-party products, such as computers and servers for the implementation of its software into customer networks, as well as provides installation and threat data interpretation services. The company's customers primarily include the United States federal government and local government entities, banks, airlines, credit unions, other financial institutions, hospitals and other healthcare providers, and other customers. Intrusion Inc. markets and distributes its products through a direct sales force to end-users, distributors, system integrators, managed service providers, and value-added resellers. The company was formerly known as Intrusion.com, Inc. and changed its name to Intrusion Inc. in November 2001. Intrusion Inc. was founded in 1983 and is headquartered in Richardson, Texas.

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