Contrasting KWESST Micro Systems (NASDAQ:KWE) and ImageWare Systems (OTCMKTS:IWSY)

KWESST Micro Systems (NASDAQ:KWE) and ImageWare Systems (OTCMKTS:IWSY) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares KWESST Micro Systems and ImageWare Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KWESST Micro Systems	-967.70%	-520.61%	-161.42%
ImageWare Systems	N/A	N/A	N/A

Risk & Volatility

KWESST Micro Systems has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, ImageWare Systems has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500.

Insider and Institutional Ownership

21.4% of KWESST Micro Systems shares are owned by institutional investors. Comparatively, 2.2% of ImageWare Systems shares are owned by institutional investors. 37.7% of ImageWare Systems 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.

Earnings & Valuation

This table compares KWESST Micro Systems and ImageWare Systems’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KWESST Micro Systems	$970,000.00	3.27	-$6.90 million	($1.28)	-0.22
ImageWare Systems	$3.47 million	N/A	$9.28 million	N/A	N/A

ImageWare Systems has higher revenue and earnings than KWESST Micro Systems.

Analyst Ratings

This is a breakdown of recent recommendations for KWESST Micro Systems and ImageWare Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KWESST Micro Systems	0	0	0	0	N/A
ImageWare Systems	0	0	0	0	N/A

Summary

ImageWare Systems beats KWESST Micro Systems on 7 of the 8 factors compared between the two stocks.

About KWESST Micro Systems

KWESST Micro Systems Inc. engages in the development and commercialization of tactical systems and ammunitions for military, public safety agencies, and personal defense markets. It provides non-lethal products, including PARA OPS devices and ARWEN products. The company was incorporated in 2017 and is headquartered in Ottawa, Canada.

About ImageWare Systems

ImageWare Systems, Inc. operates as a biometric solution provider in the United States and internationally. It offers Imageware Biometric Engine, a biometric identity and authentication database built for multi-biometric enrollment, management, and authentication. The company also provides Imageware Proof that enables an entity to prove user identity from their biometrics, government issued ID, and credit bureau data; Imageware Capture that enables the capture of biographic and biometric details, such as face, fingerprint, palm print, and iris, as well as scars, marks, and tattoos; Imageware Identify, which enables a user to identify others from their biometrics; and Imageware Investigate that enables an officer to create digital lineups. In addition, it offers Imageware Credential that enables a user to design, build, and print badges for access control systems, which includes tickets, smart badges, wristbands, personal identity verification cards, and others; Imageware Digital ID, a decentralized identity service that enables self-sovereign identity underpinned by blockchain technology tied to biometrics; and Imageware Authenticate, which enables users to leverage multimodal biometrics hosted in a central server or cloud to log in to services and applications from a device. Further, the company provides Law Enforcement 2.0 solution which enables state, local, and federal agencies to capture, archive, search, retrieve, and share digital images, fingerprints, and other biometrics, as well as criminal history records on a stand-alone, networked, wireless or browser-based platform. It serves airports and seaports, education, financial, government, healthcare, and law enforcement industries. The company was incorporated in 1987 and is headquartered in San Diego, California.