SecureWorks (NASDAQ:SCWX – Get Free Report) and KWESST Micro Systems (NASDAQ:KWE – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.
Profitability
This table compares SecureWorks and KWESST Micro Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SecureWorks | -21.23% | -4.94% | -3.43% |
| KWESST Micro Systems | -711.72% | -478.39% | -144.50% |
Analyst Recommendations
This is a summary of recent ratings for SecureWorks and KWESST Micro Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SecureWorks | 1 | 1 | 0 | 0 | 1.50 |
| KWESST Micro Systems | 0 | 0 | 0 | 0 | N/A |
Valuation and Earnings
This table compares SecureWorks and KWESST Micro Systems”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SecureWorks | $365.88 million | 2.04 | -$86.04 million | ($0.85) | -9.88 |
| KWESST Micro Systems | $1.55 million | 18.08 | -$6.90 million | ($1.28) | -1.98 |
KWESST Micro Systems has lower revenue, but higher earnings than SecureWorks. SecureWorks is trading at a lower price-to-earnings ratio than KWESST Micro Systems, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
14.4% of SecureWorks shares are owned by institutional investors. Comparatively, 21.4% of KWESST Micro Systems shares are owned by institutional investors. 81.5% of SecureWorks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
SecureWorks has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, KWESST Micro Systems has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.
Summary
SecureWorks beats KWESST Micro Systems on 7 of the 12 factors compared between the two stocks.
About SecureWorks
SecureWorks Corp., through its subsidiaries, provides technology-driven information security solutions for protecting its customers in the United States and internationally. The company's solutions include software-as-a-service solutions; managed security services; and professional services, including incident response and penetration testing services. Its solutions enable organizations to prevent security breaches, detect malicious activity, respond rapidly to security breaches, and identify emerging threats. The company sells its solutions primarily through its referral agents, regional value-added resellers, trade associations, and managed security service providers. It serves customers in a range of industries, including financial services, manufacturing, technology, retail, insurance, utility, and healthcare sectors. The company was formerly known as SecureWorks Holding Corporation and changed its name to SecureWorks Corp. in November 2015. SecureWorks Corp. was founded in 1999 and is headquartered in Atlanta, Georgia. SecureWorks Corp. is a subsidiary of Dell Marketing L.P.
About KWESST Micro Systems
KWESST Micro Systems Inc. engages in the development and commercialization of tactical systems and ammunitions for military, public safety agencies, and personal defense markets. It provides non-lethal products, including PARA OPS devices and ARWEN products. The company was incorporated in 2017 and is headquartered in Ottawa, Canada.
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