Financial Analysis: ImageWare Systems (OTCMKTS:IWSY) and Nayax (NASDAQ:NYAX)

Nayax (NASDAQ:NYAX) and ImageWare Systems (OTCMKTS:IWSY) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Institutional and Insider Ownership

34.9% of Nayax shares are owned by institutional investors. Comparatively, 2.2% of ImageWare Systems shares are owned by institutional investors. 37.7% of ImageWare Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Nayax and ImageWare Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nayax	0	4	1	1	2.50
ImageWare Systems	0	0	0	0	0.00

Nayax currently has a consensus price target of $31.25, indicating a potential upside of 14.89%. Given Nayax’s stronger consensus rating and higher possible upside, research analysts clearly believe Nayax is more favorable than ImageWare Systems.

Risk and Volatility

Nayax has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500. Comparatively, ImageWare Systems has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500.

Valuation & Earnings

This table compares Nayax and ImageWare Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nayax	$291.65 million	3.31	-$15.89 million	($0.31)	-87.74
ImageWare Systems	$3.47 million	0.00	$9.28 million	N/A	N/A

ImageWare Systems has lower revenue, but higher earnings than Nayax.

Profitability

This table compares Nayax and ImageWare Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nayax	-3.62%	-7.32%	-2.63%
ImageWare Systems	N/A	N/A	N/A

About Nayax

Nayax Ltd., a fintech company, operates system and payment platform for multiple retailers in the United States, Europe, the United Kingdom, Australia, Israel, and rest of the world. The company offers AMIT 3.0, a machine-to-machine vending telemetry solution; Nayax Core, a management and monitoring software for vending machines and other unattended machines; MoMa, a mobile app for unattended machine; Tigapo back-office software suite, a cloud-based platform; EV Core, a smart, cloud-based management platform; Retail Management Cloud, a comprehensive attended retail management platform; Loyalty and Marketing Suite, a consumer engagement marketing and loyalty platform; Monyx Wallet, a digital wallet app enabling cashless payments with mobile phones; Weezmo, a consumer engagement and marketing platform; and Tigapo app, a proprietary mobile app to help family entertainment center businesses. It provides electric vehicle charging stations; VPOS Touch, a credit card reader cashless payment device; VPOS Fusion, a cashless payment card reader; ONYX, a contactless card reader and telemetry device; NOVA 156, an electronic cash register; DOT, a smart QR and barcode reader; UNO Plus and UNO 8, which are EMV and FeliCa contactless readers; EMV SOM, a PCI-PTS ready contactless EMV reader module; Nova Market, a cashless micro market and self-checkout solution; NOVA 55, an a handheld smart point of sale (POS) device; NOVA 45, a handheld mini smart terminals for attended POS; and Retail One, a universal retail solution that integrates directly with SAP. The company sells its products directly, as well as through resellers and distributors. It serves various verticals, including vending machines, coffee machines, unattended checkout counters, self-service kiosks, ticketing machines, car wash stations, gaming machines, amusement rides, laundromats, and EV charging stations. Nayax Ltd. was incorporated in 2005 and is headquartered in Herzliya, Israel.

About ImageWare Systems

ImageWare Systems, Inc. operates as a biometric solution provider in the United States and internationally. It offers Imageware Biometric Engine, a biometric identity and authentication database built for multi-biometric enrollment, management, and authentication. The company also provides Imageware Proof that enables an entity to prove user identity from their biometrics, government issued ID, and credit bureau data; Imageware Capture that enables the capture of biographic and biometric details, such as face, fingerprint, palm print, and iris, as well as scars, marks, and tattoos; Imageware Identify, which enables a user to identify others from their biometrics; and Imageware Investigate that enables an officer to create digital lineups. In addition, it offers Imageware Credential that enables a user to design, build, and print badges for access control systems, which includes tickets, smart badges, wristbands, personal identity verification cards, and others; Imageware Digital ID, a decentralized identity service that enables self-sovereign identity underpinned by blockchain technology tied to biometrics; and Imageware Authenticate, which enables users to leverage multimodal biometrics hosted in a central server or cloud to log in to services and applications from a device. Further, the company provides Law Enforcement 2.0 solution which enables state, local, and federal agencies to capture, archive, search, retrieve, and share digital images, fingerprints, and other biometrics, as well as criminal history records on a stand-alone, networked, wireless or browser-based platform. It serves airports and seaports, education, financial, government, healthcare, and law enforcement industries. The company was incorporated in 1987 and is headquartered in San Diego, California.