Critical Analysis: WaveDancer (NASDAQ:WAVD) vs. FingerMotion (NASDAQ:FNGR)

Profitability

This table compares WaveDancer and FingerMotion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WaveDancer	-17.55%	-57.30%	-27.44%
FingerMotion	-16.14%	-51.57%	-20.08%

Valuation and Earnings

This table compares WaveDancer and FingerMotion”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WaveDancer	$7.74 million	2.03	-$2.03 million	N/A	N/A
FingerMotion	$35.79 million	2.19	-$3.76 million	($0.10)	-13.70

WaveDancer has higher earnings, but lower revenue than FingerMotion.

Volatility & Risk

WaveDancer has a beta of 3.15, indicating that its stock price is 215% more volatile than the S&P 500. Comparatively, FingerMotion has a beta of -0.77, indicating that its stock price is 177% less volatile than the S&P 500.

Institutional & Insider Ownership

5.0% of WaveDancer shares are owned by institutional investors. Comparatively, 3.9% of FingerMotion shares are owned by institutional investors. 22.7% of WaveDancer shares are owned by insiders. Comparatively, 8.2% of FingerMotion shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

FingerMotion beats WaveDancer on 5 of the 9 factors compared between the two stocks.

About WaveDancer

WaveDancer, Inc. develops and maintains information technology systems in the United States. The company also modernizes client information systems; and offers other IT-related professional services to government and commercial organizations. In addition, it offers IT consulting, development, training, migration, and on-site project support; and software development, system modernizations, cloud services, and cybersecurity services. The company was formerly known as Information Analysis Incorporated and changed its name to WaveDancer, Inc. in December 2021. WaveDancer, Inc. was incorporated in 1979 and is headquartered in Fairfax, Virginia.

About FingerMotion

FingerMotion, Inc., a mobile data specialist company, provides mobile payment and recharge platform system in China. The company offers telecommunication products and services, including data plans, subscription plans, mobile phones, and loyalty points redemption services; bulk short message service and multimedia messaging services; and Rich Communication Services (RCS) platform, a proprietary business messaging platform that enables businesses and brands to communicate and service their customers on the 5G infrastructure. It also operates Sapientus, a proprietary big data insights platform that deliver data-driven for businesses in the insurance, healthcare, and financial services industries. In addition, the company offers value added product and services. FingerMotion, Inc. is headquartered in Singapore.