Across the United States in 2016, 88% of gunfire incidents were not called into 911. However, ShotSpotter, Inc. (Nasdaq: SSTI) aims to change that by incorporating digital technologies into law enforcement to make communities safer. That’s where their main platform comes in, a real-time gunshot detection system connected directly to policing systems. Currently, they are a world leader in gunshot detection, operating with more than 200 customers and 2,500 agencies, as well as locating 101 victims in Oakland, California in 2020 when no one reported the shooting. Ultimately, they have proven their effectiveness, but now strive to acquire more of this emerging market.
Comps: Tyler Technologies, Inc. (NYSE: TYL), EverCommerce Inc. (Nasdaq: EVCM)
Since ShotSpotter is at the top of their market in the U.S., we had to expand our search parameters. Both of these companies are valued over USD 1 billion, yet ShotSpotter showed a better return on equity, debt to equity and quarterly revenue growth year over year. Furthermore, ShotSpotter possesses a higher earnings per share than EverCommerce by a substantial margin. To surmise, while ShotSpotter is at the top of its class in its niche, it also stacks up well in relation to major players in larger markets.