Red Cat (NASDAQ:RCAT) vs. Duos Technologies Group (OTCMKTS:DUOT) Critical Analysis

Red Cat (NASDAQ:RCAT) and Duos Technologies Group (OTCMKTS:DUOT) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Red Cat and Duos Technologies Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Cat	0	0	1	0	3.00
Duos Technologies Group	0	0	0	0	N/A

Red Cat currently has a consensus price target of $4.00, indicating a potential upside of 284.62%. Given Red Cat’s higher probable upside, research analysts clearly believe Red Cat is more favorable than Duos Technologies Group.

Volatility and Risk

Red Cat has a beta of -0.16, suggesting that its share price is 116% less volatile than the S&P 500. Comparatively, Duos Technologies Group has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Institutional and Insider Ownership

38.0% of Red Cat shares are held by institutional investors. Comparatively, 42.6% of Duos Technologies Group shares are held by institutional investors. 30.5% of Red Cat shares are held by insiders. Comparatively, 4.3% of Duos Technologies Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Red Cat and Duos Technologies Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Cat	-206.42%	-52.40%	-47.59%
Duos Technologies Group	-55.74%	-183.68%	-57.40%

Valuation and Earnings

This table compares Red Cat and Duos Technologies Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Cat	$9.91 million	7.80	-$27.09 million	($0.52)	-2.00
Duos Technologies Group	$5.90 million	3.74	-$6.86 million	($1.65)	-1.77

Duos Technologies Group has lower revenue, but higher earnings than Red Cat. Red Cat is trading at a lower price-to-earnings ratio than Duos Technologies Group, indicating that it is currently the more affordable of the two stocks.

Summary

Red Cat beats Duos Technologies Group on 8 of the 13 factors compared between the two stocks.

About Red Cat

Red Cat Holdings, Inc. engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment. Red Cat Holdings, Inc. is based in San Juan, Puerto Rico.

About Duos Technologies Group

Duos Technologies Group, Inc., through its subsidiary, Duos Technologies, Inc. designs and deploys artificial intelligence driven intelligent technologies systems in the United States. Its technology platforms include Praesidium, an integrated suite of analytics applications, which process and analyze data streams from virtually conventional or specialized sensors, and/or data points; and Centraco, a user interface that includes a physical security information management system. The company offers intelligent technology solutions for critical infrastructure, including Intelligent Rail Inspection Portal, Tunnel and Bridge Security, Virtual Security Shield, Facility Safety and Security, Remote Bridge Operation, Pantograph Inspection System, Vehicle Undercarriage Examiner for security and mechanical inspection, Multi-Layered Enterprise Command and Control Interface, Neural Network Modeling for detection algorithms, Automated Retail Facility Logistics, and Transit Rail Platform Analytics. It also provides engineered solutions. In addition, the company offers proprietary and turnkey systems and applications, such as rip, an intelligent rail inspection portal comprising various modules for automated analysis, detection, and inspection at rail border crossings. Further, it provides IT asset management that includes infrastructure and device audit services for various data centers. The company offers its solutions to various industries, which comprise transportation, healthcare, retail, law enforcement, oil and gas, and utilities sectors, as well as commercial railways. Duos Technologies Group, Inc. was founded in 1990 and is headquartered in Jacksonville, Florida. Duos Technologies Group, Inc. is a subsidiary of Environmental Capital Holdings, Inc.