Rekor Systems (NASDAQ:REKR) and zSpace (NASDAQ:ZSPC) Head-To-Head Comparison
Two small-cap names in the tech space—zSpace (NASDAQ: ZSPC) and Rekor Systems (NASDAQ: REKR)—operate in very different corners of the market, yet they’re often weighed against each other by investors. One leans into augmented and virtual reality for education; the other focuses on AI-powered roadway intelligence and public safety. Here’s a concise, data-driven comparison across valuation, risk, analyst sentiment, ownership, and profitability to help frame the discussion.
Earnings and Valuation
- Revenue: zSpace $38.10 million vs. Rekor Systems $46.03 million (REKR leads on top line).
- Net Income: zSpace -$20.82 million vs. Rekor Systems -$61.41 million (ZSPC posts the smaller loss).
- Earnings Per Share (EPS): zSpace -$0.79 vs. Rekor Systems -$0.42.
- Price/Sales (P/S): zSpace 0.14 vs. Rekor Systems 2.52 (ZSPC trades at a far lower revenue multiple).
- Price/Earnings (P/E): Both are negative (zSpace -0.20; Rekor -2.18), reflecting ongoing losses.
Rekor generates more revenue, but zSpace reports a narrower net loss. Valuation tells a split story: with both companies unprofitable, P/E is of limited use; on a sales basis, zSpace appears significantly cheaper with a notably lower P/S ratio.
Volatility and Risk
- Beta: zSpace -0.25 vs. Rekor Systems 2.12.
By this measure, zSpace’s shares have been inversely and less tightly correlated with the broader market, while Rekor’s higher beta points to substantially greater volatility. Risk tolerance could be a deciding factor here.
Analyst Sentiment
- zSpace ratings: 1 Sell, 1 Hold, 2 Buy; composite score 2.25.
- Rekor Systems ratings: 1 Sell, 0 Hold, 1 Buy; composite score 2.00.
- zSpace consensus target: $6.00, implying an estimated upside of 3,741.23% from current levels used in the comparison.
Based on the available figures, analysts lean slightly more favorable toward zSpace and, at least on paper, see far greater upside potential relative to its recent trading range. As always, targets can shift quickly with new results and market conditions.
Insider and Institutional Ownership
- Institutional ownership: Rekor Systems 45.7%.
- Insider ownership: zSpace 55.7% vs. Rekor Systems 13.1%.
Rekor’s higher institutional presence suggests notable interest from funds and larger managers. Meanwhile, zSpace’s heavy insider ownership can signal alignment with long-term strategy, though it may also reduce float and amplify price swings.
Profitability Snapshot
- Net Margins: zSpace -68.88% vs. Rekor Systems -89.82%.
- Return on Equity (ROE): zSpace N/A vs. Rekor Systems -126.37%.
- Return on Assets (ROA): zSpace -177.47% vs. Rekor Systems -54.48%.
Neither company is profitable, but zSpace shows relatively better net margins, while Rekor’s ROA is less negative. The mixed picture underscores how capital structure and asset intensity shape these ratios.
Who Has the Edge?
Across the categories compared here, zSpace comes out ahead in a majority of the factors (7 of 13). It trades at a lower sales multiple, carries a less volatile risk profile by beta, and enjoys a slightly more constructive analyst stance with a bolder price target. Rekor counters with stronger revenue and higher institutional participation, reflecting broader visibility in transportation tech and public sector workflows.
What They Do
zSpace (ZSPC)
zSpace builds AR/VR solutions primarily for education. Its ecosystem stitches together specialized hardware and interactive software tailored for K–12 STEM, game design, and career and technical education. The company’s approach aims to make complex subjects tactile and immersive, bridging classroom learning with hands-on simulation. Headquarters: San Jose, California.
Rekor Systems (REKR)
Rekor delivers AI-driven roadway intelligence and public safety platforms across the U.S. and internationally. Its suite spans traffic management and analytics (including comprehensive cross-agency tools), vehicle and license plate recognition, and portable and fixed edge systems for traffic data collection. Rekor also provides traffic studies and engineering services that feed planning, enforcement, and urban mobility use cases. Headquarters: Columbia, Maryland.
Bottom Line
Investors weighing zSpace versus Rekor face a classic trade-off: a lower-multiple, AR/VR-centric educational platform with sizeable insider alignment versus a higher-growth, higher-volatility roadway intelligence provider with deeper institutional backing. As always, consider your risk tolerance, time horizon, and conviction in each company’s roadmap before making a decision.
