Digital Ally (DGLY) versus Casa Systems (CASA) Head to Head Analysis

Casa Systems (NASDAQ:CASA) and Digital Ally (NASDAQ:DGLY) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

60.7% of Casa Systems shares are owned by institutional investors. Comparatively, 4.2% of Digital Ally shares are owned by institutional investors. 65.2% of Casa Systems shares are owned by insiders. Comparatively, 19.8% of Digital Ally shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Casa Systems and Digital Ally’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Casa Systems $351.58 million 3.44 $88.50 million $0.79 17.73
Digital Ally $12.77 million 1.80 -$12.25 million ($1.50) -1.98

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Casa Systems and Digital Ally, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Casa Systems 0 2 6 0 2.75
Digital Ally 0 1 1 0 2.50

Casa Systems currently has a consensus target price of $22.00, indicating a potential upside of 57.03%. Digital Ally has a consensus target price of $4.50, indicating a potential upside of 51.52%. Given Casa Systems’ stronger consensus rating and higher probable upside, research analysts plainly believe Casa Systems is more favorable than Digital Ally.

Profitability

This table compares Casa Systems and Digital Ally’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Casa Systems N/A 221.41% 14.55%
Digital Ally -112.99% -1,999.82% -86.43%

Summary

Casa Systems beats Digital Ally on 13 of the 13 factors compared between the two stocks.

Casa Systems Company Profile

Casa Systems, Inc. provides software-centric broadband products in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers software-centric infrastructure solutions that allow cable service providers to deliver voice, video, and data services over a single platform at multi-gigabit speeds. It also provides solutions for next-generation centralized, distributed, and virtualized architectures for cable broadband, fixed-line broadband, and wireless networks. Casa Systems, Inc. was founded in 2003 and is headquartered in Andover, Massachusetts.

Digital Ally Company Profile

Digital Ally, Inc. produces and sells digital video imaging and storage products for use in law enforcement, security, and commercial applications in the United States and internationally. Its digital audio/video recording, storage, and other products include an in-car digital audio/video recorder that is contained in a rear view mirror for law enforcement vehicles and commercial fleets; and hands-free automatic activated body-worn cameras and in-car video systems, as well as provides its law enforcement customers with audio/video surveillance from multiple vantage points. The company also provides VuLink, an in-car device that enables an in-car and body worn digital audio/video camera system to automatically and simultaneously start recording; and Digital Ally, a suite of data management Web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information. In addition, its digital audio/video recording, storage, and other products comprise a miniature body-worn digital video system; VuVault.net, a law enforcement cloud storage solution, including cloud-based fleet management and driver monitoring/training applications; and FleetVU Manager, a Web-based software for commercial fleet tracking and monitoring. The company sells its products through direct sales and third-party distributors. Digital Ally, Inc. is headquartered in Lenexa, Kansas.

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