VirTra (NASDAQ:VTSI) and Conversion Labs (NASDAQ:CVLB) are both small-cap aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.
Profitability
This table compares VirTra and Conversion Labs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| VirTra | -0.64% | -1.21% | -0.66% |
| Conversion Labs | -95.36% | N/A | -761.95% |
Analyst Recommendations
This is a summary of current ratings and target prices for VirTra and Conversion Labs, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| VirTra | 0 | 0 | 1 | 0 | 3.00 |
| Conversion Labs | 0 | 0 | 1 | 0 | 3.00 |
VirTra currently has a consensus target price of $6.00, suggesting a potential upside of 43.88%. Conversion Labs has a consensus target price of $15.00, suggesting a potential upside of 112.16%. Given Conversion Labs’ higher probable upside, analysts plainly believe Conversion Labs is more favorable than VirTra.
Institutional & Insider Ownership
1.3% of VirTra shares are owned by institutional investors. Comparatively, 0.9% of Conversion Labs shares are owned by institutional investors. 7.6% of VirTra shares are owned by company insiders. Comparatively, 27.9% of Conversion Labs shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
VirTra has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Conversion Labs has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.
Valuation and Earnings
This table compares VirTra and Conversion Labs’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| VirTra | $18.71 million | 1.73 | -$80,000.00 | ($0.01) | -417.00 |
| Conversion Labs | $12.47 million | 13.14 | -$3.14 million | N/A | N/A |
VirTra has higher revenue and earnings than Conversion Labs.
Summary
Conversion Labs beats VirTra on 6 of the 11 factors compared between the two stocks.
About VirTra
VirTra, Inc. provides force training simulators, firearms training simulators, and driving simulators for law enforcement, military, educational, and civilian worldwide. The company's products comprise V-300 simulator, a 300 degree wrap-around screen for simulation training; V-180 simulator, a 180 degree screen for smaller spaces or budgets; V-100, a single-screen based simulator system; V-100 MIL, a single-screen small arms training simulator; and V-ST PRO, a realistic single screen firearms shooting and skills training simulator. It also offers V-Author, a software that allows users to create, edit, and train with content specific to agency's objectives; Simulated Recoil Kits, a range of realistic and reliable simulated recoil kits/weapons; and Threat-Fire, a return fire device that applies real-world stress on the trainees during simulation training. In addition, the company provides VirTra Driving Sim, a vehicle-based simulator; Virtual Interactive Coursework Training Academy, which enables law enforcement agencies to each, train, test, and sustain departmental training requirements; Subscription Training Equipment Partnership, a program that allows agencies to utilize VirTra's simulator products, accessories, and V-VICTA interactive coursework on a subscription basis; and TASER, an OC spray and low-light training devices. It sells its simulators and related products through a direct sales force and distribution partners. The company was formerly known as VirTra Systems, Inc. and changed its name to VirTra, Inc. in October 2016. VirTra, Inc. was founded in 1993 and is based in Tempe, Arizona.
About Conversion Labs
Conversion Labs, Inc. engages in the manufacturing, distribution, and sale of natural immune support products containing proprietary yeast beta glucans. Its products are oral intake tablets and topical creams, and gels for skin application. It operates through the Finished Cosmetic Products and Nutraceutical and Cosmetic Additives segments. The company was founded in 1987 and is headquartered in New York, NY.