Analyzing NXT-ID (NXTD) & Glu Mobile (GLUU)

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

Profitability

This table compares NXT-ID and Glu Mobile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NXT-ID	-10.93%	N/A	-8.22%
Glu Mobile	-48.07%	-47.18%	-31.97%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NXT-ID and Glu Mobile, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NXT-ID	0	0	1	0	3.00
Glu Mobile	0	4	4	0	2.50

NXT-ID currently has a consensus target price of $5.00, suggesting a potential upside of 218.47%. Glu Mobile has a consensus target price of $2.97, suggesting a potential downside of 3.61%. Given NXT-ID’s stronger consensus rating and higher possible upside, equities research analysts clearly believe NXT-ID is more favorable than Glu Mobile.

Volatility & Risk

NXT-ID has a beta of -5.06, suggesting that its stock price is 606% less volatile than the S&P 500. Comparatively, Glu Mobile has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500.

Valuation & Earnings

This table compares NXT-ID and Glu Mobile’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
NXT-ID	$14.38 million	1.05	-$1.96 million	N/A	N/A
Glu Mobile	$223.16 million	1.86	-$78.82 million	N/A	N/A

NXT-ID has higher revenue, but lower earnings than Glu Mobile.

Institutional & Insider Ownership

0.9% of NXT-ID shares are held by institutional investors. Comparatively, 30.2% of Glu Mobile shares are held by institutional investors. 28.1% of NXT-ID shares are held by company insiders. Comparatively, 5.6% of Glu Mobile shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

NXT-ID beats Glu Mobile on 7 of the 12 factors compared between the two stocks.

NXT-ID Company Profile

Nxt-ID, Inc. is a technology company. The Company is focused on products, solutions and services for security on mobile devices. The Company’s core technologies consist of those that support digital payments, biometric identification, encryption, sensors and miniaturization. It has three lines of business: mobile commerce (m-commerce), primarily through the application of secure digital payment technologies; biometric access control applications, and Department of Defense contracting. It intends to use its core biometric facial and voice recognition algorithms to develop security applications (both cloud based and locally hosted) that can be used for companies, as well as individuals, law enforcement, the defense industry, and the United States Department of Defense. Its offerings include Wocket, a physical electronic smart wallet; the NXT Smartcard, a standalone smartcard; Wi-Mag, an antenna and payment technology, and 3D FaceMatch and 3D SketchArtist facial recognition products.

Glu Mobile Company Profile

Glu Mobile Inc. develops, publishes and markets a portfolio of mobile games. The Company develops and publishes a portfolio of mobile games designed to appeal to a cross section of the users of smartphones and tablet devices. Its portfolio of mobile games is spread across various genres, including Fashion and Celebrity, Food, Sports and Action, Social Networking and Home. Its portfolio of games include Contract Killer, Cooking Dash, Covet Fashion, Deer Hunter, Design Home, QuizUp, Racing Rivals and Tap Sports Baseball, as well as games based on third party licensed brands, including Gordon Ramsay DASH, Kendall & Kylie, and Kim Kardashian: Hollywood. The Company works directly with other application developers to include advertising for their applications in its games, and the developers pay them based on either the number of impressions in its games or the number of users downloading the developer’s application.