WRAP vs DGLY

For growth investors, Wrap Technologies, Inc.

(WRAP) is the stronger pick with 15. 4% revenue growth year-over-year, versus -30. 4% for Digital Ally, Inc. (DGLY). The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Wrap Technologies, Inc.

(WRAP) delivered a total return of -74. 7%, compared to -100. 0% for Digital Ally, Inc. (DGLY). Over 10 years, the gap is even starker: WRAP returned -70. 2% versus DGLY's -100. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Wrap Technologies, Inc.

(WRAP) is the lower-risk stock at 1. 94β versus Digital Ally, Inc. 's 3. 58β — meaning DGLY is approximately 85% more volatile than WRAP relative to the S&P 500.

By revenue growth (latest reported year), Wrap Technologies, Inc.

(WRAP) is pulling ahead at 15. 4% versus -30. 4% for Digital Ally, Inc. (DGLY). On earnings-per-share growth, the picture is similar: Digital Ally, Inc. grew EPS 39. 5% year-over-year, compared to -37. 5% for Wrap Technologies, Inc.. Over a 3-year CAGR, DGLY leads at -2. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Digital Ally, Inc.

(DGLY) is the more profitable company, earning -101. 0% net margin versus -198. 6% for Wrap Technologies, Inc. — meaning it keeps -101. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DGLY leads at -77. 4% versus -259. 2% for WRAP. At the gross margin level — before operating expenses — WRAP leads at 51. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

In this comparison, WRAP (1.

4% yield) pays a dividend. DGLY does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Wrap Technologies, Inc.

(WRAP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1. 4% yield). Digital Ally, Inc. (DGLY) carries a higher beta of 3. 58 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (WRAP: -70. 2%, DGLY: -100. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (WRAP (Technology) and DGLY (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: WRAP is a small-cap high-growth stock; DGLY is a small-cap quality compounder stock. WRAP pays a dividend while DGLY does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.