Financial Comparison: Intellicheck (NYSE:IDN) vs. Aware (NASDAQ:AWRE)

Aware (NASDAQ:AWRE) and Intellicheck (NYSE:IDN) 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 dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for Aware and Intellicheck, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aware	0	0	0	0	N/A
Intellicheck	0	1	2	0	2.67

Intellicheck has a consensus price target of $4.67, suggesting a potential upside of 45.83%. Given Intellicheck’s higher possible upside, analysts clearly believe Intellicheck is more favorable than Aware.

Valuation and Earnings

This table compares Aware and Intellicheck’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aware	$18.24 million	2.28	-$7.31 million	($0.33)	-5.97
Intellicheck	$18.91 million	3.29	-$1.98 million	($0.05)	-64.00

Intellicheck has higher revenue and earnings than Aware. Intellicheck is trading at a lower price-to-earnings ratio than Aware, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Aware and Intellicheck’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aware	-36.65%	-13.16%	-9.88%
Intellicheck	-5.72%	-5.82%	-4.43%

Insider and Institutional Ownership

24.4% of Aware shares are owned by institutional investors. Comparatively, 42.8% of Intellicheck shares are owned by institutional investors. 28.0% of Aware shares are owned by company insiders. Comparatively, 8.9% of Intellicheck shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Aware has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Intellicheck has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500.

Summary

Intellicheck beats Aware on 11 of the 13 factors compared between the two stocks.

About Aware

Aware, Inc., an authentication company, provides biometrics software products and solutions for government agencies and commercial entities in the United States, the United Kingdom, and internationally. The company offers biometric software solution, including Knomi, a mobile biometric framework which provides multiple biometric modality options; AwareABIS, an automated biometric identification system used for large-scale biometric identification and deduplication; AFIX suite used for small-scale law enforcement focused biometric identification; and AFIX Tracker for fingerprint, palmprint, and latent print identification, as well as AFIX Face, AFIX Verifier, AFIX Identifier, AFIX Comparator, AFIX Engine, and AFIX NIST Transaction Engine. It also provides BioSP, a biometric integration platform-as-a-service that enables biometric data processing and management functionality in a web services architecture; WebEnroll, a browser-based biometric enrollment and data management solution; and AwareID, a software-as-a-service that provides identity verification and continuous authentication capabilities. In addition, the company offers biometrics applications, such as Nexa line, a biometric search and match SDKs including Nexa Fingerprint, Nexa Face, Nexa Iris, and Nexa Voice; and AwareXM, an interoperable fingerprint matching SDK that provides fingerprint minutiae extraction, template generation, and fingerprint authentication. Further, it sells imaging products used in medical and advanced imaging application; and offers software maintenance, program management, and software engineering services. The company sells its products, services, and solutions through systems integrators, direct, and original equipment manufacturers and value added resellers channel. Aware, Inc. was incorporated in 1986 and is headquartered in Burlington, Massachusetts.

About Intellicheck

Intellicheck, Inc., a technology company, provides on-demand digital identity validation solutions for KYC, fraud, and age verification needs in North America. The company offers solutions for digital and physical identities for financial services, fintech companies, BNPL providers, e-commerce and retail commerce businesses, law enforcement, and government agencies. It provides identity systems products, including commercial identification products, such as Intellicheck Platform, an identity solution that checks whether an ID is valid, matches the ID to the person presenting it, and provides a risk score to determine the risk of doing business with that person; IDN-Portal, an Intellicheck-branded identity validation application that provides the ability to scan an ID using a mobile phone; IDN-Portal+ that offers document validation, retail POS integration, additional data for analytics and analysis, and online validation, and other features; IDN-Direct that provides access to additional data and the ability to use the platform's Risk Score capability to help with decision-making; and Intellicheck mobile app, which provides the ability to login and scan an ID. The company also offers State Aware Software solution, which provides or restricts information that is electronically scanned from an ID based on the electronic reading laws according to the state in which the ID is scanned; data collection devices that enable its software applications to be used on a variety of commercially available credit card terminals, PDAs, tablets, laptops, desktops, mobile phones, and point-of-sale terminals; and instant credit application kiosk software applications. It serves government, military, and commercial markets. The company was formerly known as Intellicheck Mobilisa, Inc. and changed its name to Intellicheck, Inc. in May 2017. Intellicheck, Inc. was incorporated in 1994 and is headquartered in Melville, New York.