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DHX vs REKR

DHX
DHI Group, Inc.
NEUTRAL
Price
$2.74
Market Cap
$123.2M
Sector
Technology
AI Confidence
80%
REKR
Rekor Systems, Inc.
BEARISH
Price
$0.89
Market Cap
$121.6M
Sector
Technology
AI Confidence
95%

Valuation

P/E Ratio
DHX
--
REKR
--
Forward P/E
DHX
13.7
REKR
-14.84
P/B Ratio
DHX
1.22
REKR
2.84
P/S Ratio
DHX
0.96
REKR
2.51
EV/EBITDA
DHX
5.95
REKR
-7.14

Profitability

Gross Margin
DHX
84.66%
REKR
55.87%
Operating Margin
DHX
11.52%
REKR
-25.91%
Profit Margin
DHX
-10.57%
REKR
-64.93%
ROE
DHX
-12.94%
REKR
-81.7%
ROA
DHX
4.3%
REKR
-18.71%

Growth

Revenue Growth
DHX
-10.2%
REKR
-4.4%
Earnings Growth
DHX
--
REKR
--

Financial Health

Debt/Equity
DHX
0.18
REKR
0.69
Current Ratio
DHX
0.44
REKR
1.06
Quick Ratio
DHX
0.38
REKR
0.87

Dividends

Dividend Yield
DHX
--
REKR
--
Payout Ratio
DHX
0.0%
REKR
0.0%

AI Verdict

DHX NEUTRAL

DHX exhibits a critically weak deterministic health profile with a Piotroski F-Score of 2/9, signaling significant fundamental deterioration. While the company maintains a strong gross margin (84.66%) and a low debt-to-equity ratio (0.18), it faces severe liquidity constraints evidenced by a current ratio of 0.44. Valuation metrics are attractive with a Price/Sales ratio under 1.0 and a reasonable forward P/E of 13.70, but these are offset by declining year-over-year revenue growth of -10.20%. The stock is a high-risk play where strong earnings beats and analyst optimism clash with deteriorating balance sheet health.

Strengths
Very high gross margins (84.66%) typical of scalable software models
Low long-term leverage with a Debt/Equity ratio of 0.18
Consistent history of beating earnings estimates with high surprise percentages
Risks
Severe liquidity risk indicated by a Current Ratio of 0.44 and Quick Ratio of 0.38
Negative revenue growth (-10.20% YoY) suggesting a shrinking market or loss of competitiveness
Weak fundamental health as evidenced by a Piotroski F-Score of 2/9
REKR BEARISH

REKR exhibits severe financial distress, anchored by a critical Piotroski F-Score of 1/9 and a complete absence of positive earnings. The company is suffering from negative revenue growth (-4.40% YoY) and deep negative profit margins (-64.93%), indicating an inability to scale its software infrastructure business profitably. With a 5-year price collapse of 95.5% and a consistent track record of missing earnings estimates, the stock is currently a speculative vehicle rather than a fundamental investment. The lack of a Graham Number or Intrinsic Value further confirms the absence of a fundamental valuation floor.

Strengths
Positive gross margin of 55.87% suggests a viable core product
Debt/Equity ratio of 0.69 is relatively moderate for the sector
Current ratio of 1.06 indicates barely sufficient short-term liquidity
Risks
Extreme financial weakness indicated by Piotroski F-Score of 1/9
Negative revenue growth (-4.40% YoY) suggests loss of market share or demand
Chronic earnings misses (only 1 beat in the last 4 quarters)

Compare Another Pair

DHX vs REKR: Head-to-Head Comparison

This page compares DHI Group, Inc. (DHX) and Rekor Systems, Inc. (REKR) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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