Reviewing T Stamp (NASDAQ:IDAI) and Karooooo (NASDAQ:KARO)

T Stamp (NASDAQ:IDAI) and Karooooo (NASDAQ:KARO) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Volatility & Risk

T Stamp has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Karooooo has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for T Stamp and Karooooo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T Stamp	0	0	0	0	0.00
Karooooo	0	0	2	0	3.00

Karooooo has a consensus target price of $44.00, suggesting a potential upside of 1.85%. Given Karooooo’s stronger consensus rating and higher probable upside, analysts plainly believe Karooooo is more favorable than T Stamp.

Profitability

This table compares T Stamp and Karooooo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
T Stamp	-346.20%	-250.54%	-102.24%
Karooooo	19.87%	30.29%	19.88%

Earnings & Valuation

This table compares T Stamp and Karooooo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T Stamp	$2.16 million	2.31	-$7.64 million	($13.49)	-0.15
Karooooo	$4.44 billion	0.30	$39.57 million	$1.56	27.69

Karooooo has higher revenue and earnings than T Stamp. T Stamp is trading at a lower price-to-earnings ratio than Karooooo, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

16.3% of T Stamp shares are held by institutional investors. 2.3% of T Stamp shares are held by insiders. Comparatively, 74.7% of Karooooo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Karooooo beats T Stamp on 12 of the 14 factors compared between the two stocks.

About T Stamp

T Stamp Inc. develops and markets identity authentication software solutions for government and enterprise partners, and peer-to-peer markets worldwide. It develops proprietary artificial intelligence-powered solutions, researching and leveraging machine learning, artificial intelligence, biometric science, cryptography, and data mining to deliver insightful identity and trust predictions that identify and defend against fraudulent identity attacks, protect sensitive user information, and extend the reach of digital services through global accessibility. It uses the Irreversibly Transformed Identity Token technology combined with a data architecture that can use one or multiple sources of biometric or other identifying data. The company also offers solutions for privacy and data protection, biometric multi-factor authentication, document validation, identity verification, geolocation, duplicate detection, age estimation, and biometric capture, as well as crypto security and compliance, and trusted message. It serves banking/fintech; humanitarian and development services; cryptocurrency and digital assets; biometrically secured email and digital communication; KYC/AML compliance; government and law enforcement; P2P transactions, social media, and sharing economy; and real estate, travel, and healthcare industries. T Stamp Inc. was incorporated in 2016 and is headquartered in Atlanta, Georgia.

About Karooooo

Karooooo Ltd. provides mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. The company offers Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; and Karooooo Logistics, a software application for management of last mile delivery and general operational logistics. It provides Cartrack Field Service, a software application for management of field and on site workers; Business Intelligence for high-level view of fleet statistics; asset tracking for tracking and tracing moveable assets; asset recovery services that assists vehicle owners and insurance companies with the recovery of vehicles and other assets; and insurance telematics that allows insurers to tailor premiums for commercial and consumer customers using analytics; Protector, a safety package for consumer vehicles; and Car Watch, a mobile application that lets users track and watch their vehicles. In addition, the company offers specialist mobility solutions that include Bike Track, a GPS-based solution for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitate active credit management for asset-based vehicle finance; electronic monitoring services application that allows law enforcement agencies to monitor persons of interest; and mobility and monitoring solutions, such as Carzuka, cartrack insurance agency, and on-demand rideshare taxi application, as well as smart IoT products. It provides its solutions through direct sales force to consumers and sole proprietors, small and medium-sized businesses, large enterprises, and other connected devices. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.