Xylo Technologies (NASDAQ:XYLO) & WISeKey International (NASDAQ:WKEY) Critical Analysis

WISeKey International (NASDAQ:WKEY) and Xylo Technologies (NASDAQ:XYLO) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

WISeKey International has a beta of 2.05, suggesting that its share price is 105% more volatile than the S&P 500. Comparatively, Xylo Technologies has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Valuation & Earnings

This table compares WISeKey International and Xylo Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WISeKey International	$20.99 million	3.18	-$15.36 million	N/A	N/A
Xylo Technologies	$57.64 million	0.05	-$16.02 million	N/A	N/A

WISeKey International has higher earnings, but lower revenue than Xylo Technologies.

Insider & Institutional Ownership

0.3% of WISeKey International shares are owned by institutional investors. Comparatively, 0.3% of Xylo Technologies shares are owned by institutional investors. 33.5% of WISeKey International shares are owned by insiders. Comparatively, 2.2% of Xylo Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares WISeKey International and Xylo Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WISeKey International	N/A	N/A	N/A
Xylo Technologies	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and price targets for WISeKey International and Xylo Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WISeKey International	0	0	1	0	3.00
Xylo Technologies	0	0	0	0	0.00

WISeKey International currently has a consensus price target of $4.00, indicating a potential downside of 59.60%. Given WISeKey International’s stronger consensus rating and higher probable upside, research analysts clearly believe WISeKey International is more favorable than Xylo Technologies.

Summary

WISeKey International beats Xylo Technologies on 8 of the 9 factors compared between the two stocks.

About WISeKey International

WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates in two segments, IoT and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, it engages in financing, sales, and distribution activities; and sells semiconductors secure chips. The company was founded in 1999 and is headquartered in Zug, Switzerland.

About Xylo Technologies

Xylo Technologies Ltd, a technology-based company, provides medical-related devices and products in the United States, Europe, Asia, Israel, and internationally. The company operates through Corporate, E-commerce, Online Advertising & Internet Traffic Routing, Online Event Management, and Others segments. It offers Medigus Ultrasonic Surgical Endostapler, an endoscopy system, which is used for the treatment of gastroesophageal reflux disease. The company also develops biological gels to protect patients against biological threats and reduce the intrusion of allergens and viruses through the upper airways and eye cavities. In addition, it provides digital advertising platform; and operates online stores for the sale of various consumer products on the Amazon online marketplace, as well as an online event management and ticketing platform. Further, the company develops wireless vehicle battery charging technologies and modular electronic vehicles. The company was formerly known as Medigus Ltd. and changed its name to Xylo Technologies Ltd in April 2024. Xylo Technologies Ltd was incorporated in 1999 and is headquartered in Tel Aviv-Yafo, Israel.