Financial Analysis: Magal Security Systems (MAGS) vs. Risk (George) Industries (RSKIA)

Magal Security Systems (NASDAQ:MAGS) and Risk (George) Industries (OTCMKTS:RSKIA) are both small-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

Get Magal Security Systems alerts:

This table compares Magal Security Systems and Risk (George) Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Magal Security Systems 3.73% 4.36% 3.26%
Risk (George) Industries 19.65% 7.15% 6.55%

Dividends

Risk (George) Industries pays an annual dividend of $0.38 per share and has a dividend yield of 4.6%. Magal Security Systems does not pay a dividend.

Institutional and Insider Ownership

15.7% of Magal Security Systems shares are held by institutional investors. 24.4% of Magal Security Systems shares are held 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.

Analyst Recommendations

This is a breakdown of current ratings for Magal Security Systems and Risk (George) Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magal Security Systems 0 0 0 0 N/A
Risk (George) Industries 0 0 0 0 N/A

Volatility & Risk

Magal Security Systems has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Risk (George) Industries has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.

Earnings and Valuation

This table compares Magal Security Systems and Risk (George) Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Magal Security Systems $64.29 million 1.88 -$6.91 million N/A N/A
Risk (George) Industries $11.93 million 3.45 $2.54 million N/A N/A

Risk (George) Industries has lower revenue, but higher earnings than Magal Security Systems.

Summary

Risk (George) Industries beats Magal Security Systems on 6 of the 11 factors compared between the two stocks.

About Magal Security Systems

Magal Security Systems Ltd. develops, manufactures, markets, and sells perimeter intrusion detection sensors, physical barriers, video analytics and video management systems, and cyber security products and systems worldwide. It operates through three segments: Perimeter Products, Turnkey Projects, and Video and Cyber Security. The company offers perimeter security products that enable customers to monitor, limit, and control access by unauthorized personnel to specific regions or areas. Its perimeter security systems include fence mounted detection systems; detection grids, gates, and fences to protect water passages, VIP residences, and other outdoor applications; buried sensors; hybrid perimeter intrusion detection and intelligent lighting systems; electrical field disturbance sensors; and microwave sensors. The company also provides integrated intelligent video management solutions for security surveillance and business intelligence applications; and cyber-security products for monitoring, securing, and the active management of wired, wireless, and fiber optic communication networks, as well as turnkey solutions. In addition, it offers RoboGuard, a platform that runs on a rail along the perimeter of protected sites; and life safety/duress alarm products to protect personnel in prisons. Further, the company provides MTC-1500I, a dual technology outdoor surveillance system; Fortis4G, a fourth generation command and control system; StarNet 2, a security management system; and Network Manager, a middleware package. Its products are used to protect national borders, military bases, power plants, airports, sea ports, postal facilities, prisons, banks, retail operations, hospitals, municipal security, sporting events, and industrial locations from terrorism, theft, and other security threats. The company sells its products through system integrators and distribution channels. Magal Security Systems Ltd. was founded in 1965 and is headquartered in Yehud, Israel.

About Risk (George) Industries

George Risk Industries, Inc. designs, manufactures, and sells various electronic components. It offers computer keyboards, push button switches, burglar alarm components and systems, pool alarms, thermostats, EZ duct wire covers, and water sensors, as well as door and window contact switches, environmental products, wire and cable installation tools, and proximity switches. The company's products are used for residential, commercial, industrial, and government installations. George Risk Industries, Inc. sells its products to security alarm distributors, alarm installers, original equipment manufacturers, and distributors of off-the-shelf keyboards of proprietary design worldwide. The company was incorporated in 1967 and is headquartered in Kimball, Nebraska.

Leave a Reply

Your email address will not be published. Required fields are marked *