SSTI vs WRAP

For growth investors, Wrap Technologies, Inc.

(WRAP) is the stronger pick with 15. 4% revenue growth year-over-year, versus 10. 0% for SoundThinking, Inc. (SSTI). 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 -76. 3%, compared to -79. 0% for SoundThinking, Inc. (SSTI). Over 10 years, the gap is even starker: SSTI returned -53. 3% versus WRAP's -70. 8%. 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), SoundThinking, Inc.

(SSTI) is the lower-risk stock at 1. 53β versus Wrap Technologies, Inc. 's 1. 94β — meaning WRAP is approximately 27% more volatile than SSTI relative to the S&P 500. On balance sheet safety, SoundThinking, Inc. (SSTI) carries a lower debt/equity ratio of 8% versus 21% for Wrap Technologies, Inc. — giving it more financial flexibility in a downturn.

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

(WRAP) is pulling ahead at 15. 4% versus 10. 0% for SoundThinking, Inc. (SSTI). On earnings-per-share growth, the picture is similar: Wrap Technologies, Inc. grew EPS -37. 5% year-over-year, compared to -227. 3% for SoundThinking, Inc.. Over a 3-year CAGR, SSTI leads at 20. 6% 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.

SoundThinking, Inc.

(SSTI) is the more profitable company, earning -9. 0% net margin versus -198. 6% for Wrap Technologies, Inc. — meaning it keeps -9. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SSTI leads at -7. 7% versus -259. 2% for WRAP. At the gross margin level — before operating expenses — SSTI leads at 57. 3%, 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.

5% yield) pays a dividend. SSTI 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. 5% yield). SoundThinking, Inc. (SSTI) carries a higher beta of 1. 53 — 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. 8%, SSTI: -53. 3%), 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.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: SSTI is a small-cap quality compounder stock; WRAP is a small-cap high-growth stock. WRAP pays a dividend while SSTI 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.