Reviewing Datasea (NASDAQ:DTSS) and Alarum Technologies (NASDAQ:ALAR)

Alarum Technologies (NASDAQ:ALAR) and Datasea (NASDAQ:DTSS) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Valuation and Earnings

This table compares Alarum Technologies and Datasea”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alarum Technologies	$31.82 million	1.44	-$5.53 million	$0.84	7.89
Datasea	$47.28 million	0.30	-$11.38 million	N/A	N/A

Alarum Technologies has higher earnings, but lower revenue than Datasea.

Analyst Ratings

This is a summary of current ratings for Alarum Technologies and Datasea, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alarum Technologies	0	0	3	0	3.00
Datasea	0	0	0	0	0.00

Alarum Technologies currently has a consensus price target of $24.33, indicating a potential upside of 267.02%. Given Alarum Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Alarum Technologies is more favorable than Datasea.

Institutional & Insider Ownership

3.2% of Alarum Technologies shares are owned by institutional investors. Comparatively, 82.1% of Datasea shares are owned by institutional investors. 2.7% of Alarum Technologies shares are owned by insiders. Comparatively, 41.1% of Datasea shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Alarum Technologies and Datasea’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alarum Technologies	22.21%	46.33%	31.59%
Datasea	-26.69%	-618.32%	-245.91%

Risk and Volatility

Alarum Technologies has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Datasea has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Summary

Alarum Technologies beats Datasea on 9 of the 12 factors compared between the two stocks.

About Alarum Technologies

Alarum Technologies Ltd. provides internet access and web data collection solutions in North, South, and Central America, Europe, Southeast Asia, the Middle East, and Africa. The company operates through two segments, Enterprise Internet Access Solutions and Consumer Internet Access Solutions. The company offers security blanket against ransomware, viruses, phishing, and other online threats, as well as secured and encrypted connection, masking the customers online activity and keeping them safe from hackers. It also provides privacy solutions and services, a software solution that uses an encryption protocol which is defined upon the process being used to generate a secured encrypted path and keep the users' data private and safe; and web data collection solution allows organizations to collect vast amounts of web and internet data by simultaneously connecting to the Internet from different IP addresses. In addition, the company offers static residential proxy network, rotating residential proxy network, data center proxy network, premium dedicated static residential proxies, mobile proxies, SERP data collection service, and social data collection service, as well as advertising services to enterprise customers. The company offers its products through resellers and internet service providers. It serves advertising and media companies, financial organizations, cyber security companies, industrial and commercial companies, online companies, education institutions, and AI recruitment market and other sectors. The company was formerly known as Safe-T Group Ltd. and changed its name to Alarum Technologies Ltd. in January 2023. Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv, Israel.

About Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.