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NSSC vs RCAT

NSSC
Napco Security Technologies, Inc.
NEUTRAL
Price
$44.21
Market Cap
$1.58B
Sector
Industrials
AI Confidence
85%
RCAT
Red Cat Holdings, Inc.
BEARISH
Price
$12.72
Market Cap
$1.54B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
NSSC
33.49
RCAT
--
Forward P/E
NSSC
27.46
RCAT
-42.4
P/B Ratio
NSSC
8.53
RCAT
6.21
P/S Ratio
NSSC
8.21
RCAT
37.83
EV/EBITDA
NSSC
28.48
RCAT
-21.63

Profitability

Gross Margin
NSSC
56.58%
RCAT
3.13%
Operating Margin
NSSC
17.81%
RCAT
-91.26%
Profit Margin
NSSC
24.7%
RCAT
-176.96%
ROE
NSSC
26.42%
RCAT
-48.71%
ROA
NSSC
15.72%
RCAT
-25.28%

Growth

Revenue Growth
NSSC
7.6%
RCAT
--
Earnings Growth
NSSC
21.4%
RCAT
--

Financial Health

Debt/Equity
NSSC
0.12
RCAT
0.07
Current Ratio
NSSC
7.99
RCAT
15.29
Quick Ratio
NSSC
6.37
RCAT
13.07

Dividends

Dividend Yield
NSSC
1.36%
RCAT
--
Payout Ratio
NSSC
41.29%
RCAT
0.0%

AI Verdict

NSSC NEUTRAL

NSSC presents a dichotomy between exceptional operational health and concerning valuation/sentiment metrics. The company maintains a stable Piotroski F-Score of 4/9 and a fortress-like balance sheet with a Debt/Equity ratio of 0.12 and a Current Ratio of 7.99. However, the stock is significantly overvalued relative to its Graham Number ($12.41) and is currently trading above its growth-based intrinsic value ($38.94). Strong earnings growth and profitability are currently offset by heavy insider selling by the CEO and a very bearish technical trend.

Strengths
Exceptional liquidity with a Current Ratio of 7.99
Very low financial leverage (Debt/Equity 0.12)
Strong profitability margins (Gross Margin 56.58%, Profit Margin 24.70%)
Risks
Extreme valuation premiums (Price/Book 8.53, Price/Sales 8.21)
Strongly bearish insider activity with $15.4M in CEO/Officer sales
Technical trend is heavily bearish (10/100)
RCAT BEARISH

RCAT exhibits a weak deterministic health profile with a Piotroski F-Score of 3/9, indicating significant fundamental instability. While the company shows explosive Q/Q revenue growth (1609.38%) and maintains an exceptionally strong liquidity position (Current Ratio 15.29), these are offset by a catastrophic profit margin of -176.96% and a Price/Sales ratio of 37.83, which is extreme for the Industrials sector. The stock is currently priced as a high-growth speculative asset, but a consistent track record of missing earnings estimates over 17 quarters suggests a failure to execute on financial projections.

Strengths
Explosive Q/Q revenue growth of 1609.38%
Very low leverage with a Debt/Equity ratio of 0.07
Exceptional short-term liquidity (Current Ratio 15.29)
Risks
Extreme valuation with a Price/Sales ratio of 37.83
Deeply negative profitability (Profit Margin -176.96%)
Chronic history of earnings misses (only 1 beat in last 4 quarters)

Compare Another Pair

NSSC vs RCAT: Head-to-Head Comparison

This page compares Napco Security Technologies, Inc. (NSSC) and Red Cat Holdings, Inc. (RCAT) 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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