In the high-stakes game of technology investing, Wrap Technologies (WRTC) and Sensata Technologies (ST) are two contenders vying for investor attention. With a market capitalization of $130.1M
, Wrap Technologies, a player in the Electronic Equipment, Instruments & Components sector, has been on a roller coaster ride. As of November 5, 2023, the company reported a cash position of $5.3M and quarterly revenue growth of 0.032. However, it's not all rosy as the firm posted a loss with a profit margin of -2.28. On the other hand, we have Sensata Technologies, a well-established name in the same industry. The question is, can Wrap Technologies outpace Sensata in terms of stock price appreciation? Let's delve deeper. It appears that Sensata Technologies is on a faster recovery path as its share price surged by 2.30% today, compared to Wrap Technologies' 33.19%. While some of us are enthusiastic about the electronic equipment, instruments, and components sector, we will assess the stability of the fundamentals of both Wrap Technologies and Sensata Technologies. We will discuss some of the competitive aspects of both Wrap and Sensata.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Wrap or Sensata is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Wrap Technologies's Liquidity
Wrap Technologies financial leverage
refers to using borrowed capital as a funding source to finance Wrap Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Wrap Technologies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Wrap Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Wrap Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown
between Wrap Technologies's total debt and its cash.
Correlation Between Wrap and Sensata Technologies
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Wrap Technologies together with similar or unrelated positions with a negative correlation. For example, you can also add Sensata Technologies to your portfolio. If Sensata Technologies is not perfectly correlated to Wrap Technologies it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Wrap Technologies, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Wrap Technologies and Sensata Technologies in your portfolio? Please note if you are using this as a pair-trade strategy between Wrap Technologies and Sensata Technologies, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check pair correlation details
between WRAP and ST for more information.
Breaking down Wrap Technologies Indicators
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Let me now go over Wrap Technologies revenue. Based on the latest financial disclosure, Wrap Technologies reported 8.05 M
of revenue. This is 99.8% lower than that of the Electronic Equipment, Instruments & Components sector and 99.32% lower than that of the Information Technology
The revenue for all United States stocks is 99.91% higher than that of the firm. As for Sensata Technologies we see revenue of 4.03 B
, which is 238.58% higher than that of the Information Technology
As Warren Buffet once said, price is what you pay, value is what you get. In the case of Sensata and Wrap Technologies, this adage rings particularly true. Despite Wrap Technologies' impressive current ratio of 12.76X and a market capitalization of 130.09M
, the company's financial health
is marred by a high probability of bankruptcy at 49.17% and a negative EBITDA of 14.9M, indicating significant losses. Sensata, on the other hand, has shown robust performance with a beta of 1.83, suggesting a higher potential for stock price appreciation. However, investors should also consider Wrap Technologies' potential upside of 15.45 and the fact that 33.87% of its shares are owned by insiders, which could indicate confidence in the company's future. While both companies have their strengths, Sensata's lower risk profile may make it the more attractive investment for those seeking steady stock price appreciation. .
Our take on today Wrap Technologies spike
Wrap Technologies has been creating a stir in the financial market, with the latest semi-deviation surging over 3.6. This spike signifies a significant increase in the company's risk-adjusted performance. Investors should pay attention to this shift as it indicates that the stock's returns are diverging from their anticipated value. While this surge could potentially signal higher returns, it also suggests a higher risk. Therefore, investors should approach Wrap Technologies with a balanced perspective, recognizing the potential for both high returns and substantial volatility. Wrap Technologies is exhibiting above-average volatility over the chosen time horizon. Investors should examine Wrap Technologies independently to ensure that their intended market timing
strategies align with their expectations about the company's volatility. Understanding different market volatility
trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to gauge Wrap Technologies' stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect Wrap Technologies' stock price
, adding stress for investors as they watch the value of their shares plummet. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Wrap Technologies (USA Stocks: WRAP) presents a mixed picture for potential investors. The company's valuation hype value stands at 3.05
, which suggests a level of over-enthusiasm in the market. However, the valuation market value is slightly lower at 3.01
, closer to the valuation real value of 2.6. This indicates that the stock may be somewhat overvalued. With the fiscal year end in December, investors have time to monitor the company's performance. The analyst overall consensus is a 'Hold', with one analyst maintaining this position. Therefore, while there may be potential for Wrap Technologies to reverse its course, it would be prudent for investors to proceed with caution. .
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.Try AI Portfolio Architect
for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to firstname.lastname@example.org