NXT-ID (NXTD) vs. Costar Technologies (CSTI) Critical Review

NXT-ID (NASDAQ:NXTD) and Costar Technologies (OTCMKTS:CSTI) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares NXT-ID and Costar Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NXT-ID -31.23% -31.14% -12.56%
Costar Technologies N/A N/A N/A

Volatility & Risk

NXT-ID has a beta of -3.75, suggesting that its share price is 475% less volatile than the S&P 500. Comparatively, Costar Technologies has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Institutional and Insider Ownership

4.8% of NXT-ID shares are owned by institutional investors. Comparatively, 14.5% of Costar Technologies shares are owned by institutional investors. 13.3% of NXT-ID shares are owned by insiders. Comparatively, 4.9% of Costar Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares NXT-ID and Costar Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NXT-ID $23.31 million 1.15 -$8.26 million N/A N/A
Costar Technologies $38.56 million 0.40 $630,000.00 N/A N/A

Costar Technologies has higher revenue and earnings than NXT-ID.

Analyst Ratings

This is a summary of recent recommendations for NXT-ID and Costar Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NXT-ID 0 0 2 0 3.00
Costar Technologies 0 0 0 0 N/A

NXT-ID presently has a consensus target price of $4.50, suggesting a potential upside of 320.56%. Given NXT-ID’s higher probable upside, equities research analysts clearly believe NXT-ID is more favorable than Costar Technologies.

Summary

Costar Technologies beats NXT-ID on 7 of the 11 factors compared between the two stocks.

About NXT-ID

Nxt-ID, Inc., a security technology company, engages in the development of products and solutions for security, healthcare, financial technology, and Internet of Things (IoT) markets. It offers non-monitored and monitored personal emergency response systems (PERS), including landline and cell-based options; the Fit Pay Trusted Payment Manager Platform (TPMP) that provides IoT and wearable devices with contactless payment capabilities and full digital wallet functionality; World Ventures Flye SmartCard, a smartcard customized for WorldVentures, the travel company; and Fit Pay General Purpose Reloadable Mastercard, which offers prepaid capabilities on wearable devices connected to the TPMP. The company also offers Flip, a new contactless payment device that will enable cryptocurrency holders to use the value of their currency to make purchases at millions of retail locations; Wi-Mag that allows users to make payments at most POS terminals; and SmartPay with the ability to make payments by dynamic magnetic stripe or through interacting with a terminal through EMV, NFC, or barcode functionality on various devices. The company sells its products through dealers and distributors. It has a strategic alliance agreement with QubeChain LLC for the development and marketing of blockchain-based technology solutions in the healthcare, payments, and other strategic markets. Under the Agreement, the companies will jointly offer technology products and solutions from both companies to their respective customer bases and collaborate to pursue new market opportunities. Nxt-ID, Inc. was founded in 2011 and is based in Melbourne, Florida.

About Costar Technologies

Costar Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, and distributes a range of security solution products for the video surveillance and machine vision markets in the United States. The company operates through three segments: Costar Video Systems, CohuHD Costar, and Other. Its products include video management software, surveillance cameras, network video recorders, and digital video recorders; monitors, lenses, cables, lighting products, and other video and electronic accessories; and camera mounts and data storage devices. The company provides its solutions for financial institutions, educational facilities, retail stores, manufacturing plants, highways, government buildings, military bases, borders, and other applications. The company was formerly known as Sielox, Inc. and changed its name to Costar Technologies, Inc. in October 2011. Costar Technologies, Inc. was founded in 1997 and is based in Coppell, Texas.

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