Rekor Systems (NASDAQ:REKR – Get Free Report) and Definitive Healthcare (NASDAQ:DH – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
Analyst Recommendations
This is a breakdown of current ratings for Rekor Systems and Definitive Healthcare, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rekor Systems | 1 | 0 | 0 | 0 | 1.00 |
| Definitive Healthcare | 4 | 3 | 1 | 1 | 1.89 |
Definitive Healthcare has a consensus target price of $2.47, suggesting a potential upside of 261.85%. Given Definitive Healthcare’s stronger consensus rating and higher possible upside, analysts plainly believe Definitive Healthcare is more favorable than Rekor Systems.
Volatility and Risk
Profitability
This table compares Rekor Systems and Definitive Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rekor Systems | -60.48% | -80.28% | -36.87% |
| Definitive Healthcare | -76.04% | 4.04% | 1.99% |
Earnings and Valuation
This table compares Rekor Systems and Definitive Healthcare”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rekor Systems | $48.45 million | 1.73 | -$31.46 million | ($0.23) | -2.65 |
| Definitive Healthcare | $241.52 million | 0.30 | -$138.93 million | ($1.62) | -0.42 |
Rekor Systems has higher earnings, but lower revenue than Definitive Healthcare. Rekor Systems is trading at a lower price-to-earnings ratio than Definitive Healthcare, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
45.7% of Rekor Systems shares are owned by institutional investors. Comparatively, 98.7% of Definitive Healthcare shares are owned by institutional investors. 3.2% of Rekor Systems shares are owned by company insiders. Comparatively, 17.1% of Definitive Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Definitive Healthcare beats Rekor Systems on 10 of the 15 factors compared between the two stocks.
About Rekor Systems
Rekor Systems, Inc., a technology company, provides infrastructure solutions for transportation, public safety, and urban mobility markets in the United States and internationally. The company's platforms include Rekor One, an AI-powered roadway intelligence platform; Rekor Command, a comprehensive cross-agency platform that offers various applications for traffic management centers, freeway service patrol, first responders, and maintenance crews; Rekor Discover, a platform that ingests data from its hardware and automates comprehensive analytics and actionable insights about the movement of objects across the roadway; and Rekor Scout platform, which automates previously manual processes with collaborative solutions that keep all stakeholders apprised of developing situations and accelerate reaction times to incidents and offenders. It also offers Rekor AutoNotice, a cloud-based financial management application that delivers a turnkey information and citation management solution for cities, states, and municipalities for primary and secondary offenses; and Rekor CarCheck, which allows its AI based vehicle and license plate recognition technology to be accessed for a range of commercial applications. In addition, the company offers Rekor Edge Max System, a fixed traffic data collection system that captures and transforms roadway data into holistic traffic insights; Rekor Edge Pro, a vehicle recognition solution that is used on a standalone basis or integrated into a network; and Rekor Edge Flex, a portable data collection system. Further, it provides traffic services, including traditional traffic studies, which delivers data and insights for planning and management of roadway infrastructure and commercial initiatives; innovative AI-driven traffic studies for traffic management; and traffic engineering services. The company was incorporated in 2017 and is headquartered in Columbia, Maryland.
About Definitive Healthcare
Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.
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