FalconStor Software (OTCMKTS:FALC) and Iveda Solutions (NASDAQ:IVDA) Financial Review

Iveda Solutions (NASDAQ:IVDA) and FalconStor Software (OTCMKTS:FALC) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Volatility and Risk

Iveda Solutions has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, FalconStor Software has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500.

Insider & Institutional Ownership

4.3% of Iveda Solutions shares are held by institutional investors. Comparatively, 9.5% of FalconStor Software shares are held by institutional investors. 10.4% of Iveda Solutions shares are held by company insiders. Comparatively, 52.8% of FalconStor Software shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Iveda Solutions and FalconStor Software”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iveda Solutions	$3.78 million	6.89	-$3.23 million	($0.24)	-6.67
FalconStor Software	$11.60 million	0.77	$980,000.00	($0.06)	-20.83

FalconStor Software has higher revenue and earnings than Iveda Solutions. FalconStor Software is trading at a lower price-to-earnings ratio than Iveda Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for Iveda Solutions and FalconStor Software, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iveda Solutions	0	0	0	0	N/A
FalconStor Software	0	0	0	0	N/A

Profitability

This table compares Iveda Solutions and FalconStor Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iveda Solutions	-93.39%	-66.09%	-49.31%
FalconStor Software	14.90%	-9.90%	15.87%

Summary

FalconStor Software beats Iveda Solutions on 9 of the 11 factors compared between the two stocks.

About Iveda Solutions

Iveda Solutions, Inc. provides artificial intelligence (AI) and digital transformation technologies in the United States, Egypt, and Taiwan. The company offers IvedaAI, a deep-learning video analytics software; IvedaPinpoint, a solution that manages Bluetooth trackers and sensors, and displays them on a map for exact location; and Sentir Video, a video surveillance solution for various kinds of applications. It also provides Cerebro IoT Platform, a software technology platform that integrates a multitude of disparate systems for central access and management of applications, subsystems, and devices; and IvedaSPS, a smart power solution utilizing in Cerebro IoT platform. In addition, the company offers Utilus smart pole solution that consists of power and Internet with a communication network for the access and management of sensors and devices. It serves airports, commercial buildings, government customers, data centers, shopping centers, hotels, banks, and safe city projects. Iveda Solutions, Inc. was founded in 2003 and is based in Mesa, Arizona.

About FalconStor Software

FalconStor Software, Inc., a storage software company, enables enterprise customers and managed service providers to secure, migrate, and protect their data worldwide. It offers FalconStor Virtual Tape Library, a software that emulates and replaces cumbersome physical tape libraries for archive related data preservation without being replacing their enterprise backup and archive software and associated processes; FalconStor StorSafe, a long-term archive data management software; FalconStor Continuous Data Protector delivers instant data availability, and reliable recovery; and FalconStor Network Storage Server for data storage virtualization and business continuity in heterogeneous environments. The company also provides FalconStor StorSigh, a long-term archive and business continuity driven data replication from one centralized management point; FalconStor RecoverTrac Disaster Recovery Technology that streamlines the implementation, testing, and execution of disaster recovery operations; and FalconStor MicroScanTM Technology, which minimizes the amount of data transferred during replication by eliminating inefficiencies at the application and file system layer. It sells its products through authorized partners, value-added resellers, solution providers, system integrators, direct market resellers, distributors, managed service providers, cloud service providers, and original equipment manufacturers, as well as directly to customers. The company was incorporated in 1994 and is headquartered in Austin, Texas.