Analyzing OneSpan (NASDAQ:OSPN) and ARB IOT Group (NASDAQ:ARBB)

OneSpan (NASDAQ:OSPN) and ARB IOT Group (NASDAQ:ARBB) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for OneSpan and ARB IOT Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneSpan	0	2	1	0	2.33
ARB IOT Group	0	0	1	0	3.00

OneSpan presently has a consensus target price of $13.83, suggesting a potential upside of 11.65%. ARB IOT Group has a consensus target price of $8.00, suggesting a potential upside of 627.27%. Given ARB IOT Group’s stronger consensus rating and higher possible upside, analysts clearly believe ARB IOT Group is more favorable than OneSpan.

Insider & Institutional Ownership

95.5% of OneSpan shares are owned by institutional investors. Comparatively, 14.8% of ARB IOT Group shares are owned by institutional investors. 0.8% of OneSpan shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares OneSpan and ARB IOT Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneSpan	-3.29%	6.10%	3.66%
ARB IOT Group	N/A	N/A	N/A

Valuation and Earnings

This table compares OneSpan and ARB IOT Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneSpan	$235.11 million	1.99	-$29.80 million	($0.18)	-68.83
ARB IOT Group	$51.86 million	0.56	$5.53 million	N/A	N/A

ARB IOT Group has lower revenue, but higher earnings than OneSpan.

Summary

OneSpan beats ARB IOT Group on 6 of the 10 factors compared between the two stocks.

About OneSpan

OneSpan Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, authentication, and secure digital agreements worldwide. The company offers OneSpan Sign, a range of e-signature requirements for occasional agreement to processing tens of thousands of transactions; OneSpan Cloud Authentication, a cloud-based multifactor authentication solution that supports a range of authentication options, including biometrics, push notification, and visual cryptograms for transaction data security, SMS, and hardware authenticators; and OneSpan Identity Verification, which enables banks and financial institutions identity verification services. It also provides Mobile Security Suite, a software development kit that protect mobile transactions; Digipass Authenticators, consisting of a wide variety of authentication devices; authentication servers that provides a range of strong authentication utilities and solutions designed to allow organizations to securely authenticate users and transactions; and Digipass FX1 BIO, a physical passkey with fingerprint scan built for the workforce authentication market. In addition, it offers Virtual Room, a purpose-built, high-assurance solution that blends the simplicity of a consumer video collaboration app with high-assurance identity and authentication security; OneSpan Notary, an online notary solution developed for organizations with in-house notaries; and OneSpan Trust Vault, a blockchain-based decentralized digital storage solution that helps organizations meet compliance, regulatory, and chain of custody requirements for critical documents. It sells its solutions through its direct sales force, as well as through distributors, resellers, systems integrators, and original equipment manufacturers. The company was formerly known as VASCO Data Security International, Inc. and changed its name to OneSpan Inc. in May 2018. OneSpan Inc. was founded in 1991 and is headquartered in Boston, Massachusetts.

About ARB IOT Group

ARB IOT Group Limited, through its subsidiaries, provides Internet of Things (IoT) system solutions, and system integration and support services in Malaysia. It offers IoT smart home and building solutions, such as design, procurement, and provision of smart home products and devices; integration services; and electrical wire installation and home data network setup for homeowners, as well as provides smart building solutions, including design, procurement, installation, testing, pre-commissioning and commissioning of various IoT systems, solutions, and devices; and integration of automated systems for smart buildings, including installation of wire and wireless, and mechatronic works for property developers and contractors. The company offers IoT smart agriculture solutions, such as designing the layout of the smart farm for the application and integration of IoT in farming and hydroponics, which includes the procurement of sensors and surveillance cameras, as well as other hardware for farm; designing of software to enable transfer of data from the smart farm to a cloud server, which can then be accessed remotely through smart devices; installing, testing, and commissioning of the hardware and software; and after-sales services comprising data analytics and periodic maintenance services. In addition, it provides IoT system development solutions, including procuring, supplying, and delivering industrial building systems for construction projects; and IoT gadget distribution solutions comprising supply chain and distribution of smart phones, accessories, and ICT and IoT products, as well as provides shipping tracking and status updates, customer care line, online chat support, digital marketing, pre-installation, and warranty services. The company was incorporated in 2022 and is based in Kuala Lumpur, Malaysia. ARB IOT Group Limited is a subsidiary of ARB Berhad.