The coronavirus is increasing investor interest in biometric stocks.
For one, demand will grow even faster as companies require accurate identification of everyone entering a building.
With the Centers for Disease Control and Prevention saying people could become infected by touching things, contactless biometric technologies, such as iris and facial recognition could offer far better solutions, as noted by Security Magazine contributor Mohammed Murad.
“Organizations are looking for ways to open doors without touching the hardware. Solutions may include sensors or foot pedals capable of electronically opening entries without the need to pull handles or twist knobs and levers. Touchless switches mounted at entry points could sense the wave of a hand. Motion detectors may also open doors. The use of contactless biometrics adds a layer of security and safety.”
Two, biometrics are being used to screen for the coronavirus.
In fact, Clear, a private company that specializes in biometric security, just released HealthPass that will link virus information to biometric identifiers, such as your face, or your eyes. In short, biometrics could very well be the key to riches moving forward.
And three, biometrics make it nearly impossible for anyone to break into a system or commit fraud. Now, more than ever, biometrics are needed to help improve security, stop cyberattacks, and create far better systems for authentication.
That being said, some of the top biometric stocks to watch include:
Top Biometric Stocks in 2020: Aware (AWRE)
For anyone wanting to build out a solid biometric portfolio, Aware should be at the top of that list. The company offers biometrics software solutions that serve ID-based security functions. Most recently, its CaptureSuite solution was chosen by the U.S. Customs and Border Protection Agency for deployment at U.S. land border crossings.
It also just released Knomi 2.6, which will equip Aware customers with “passive facial liveness and authentication combined with an additional voice biometric capability – speaker recognition – to provide secure, cost-effective, and convenient access to applications and networks,” according to a recent news release.
Better, Aware announced a stock repurchase program of up to $10 million of common stock, which will expire at the end of 2021.
Intellicheck is an interesting trade on the biometrics space.
After exploding from a low of $1.91 to $8.02, shares of IDN could still double, if not triple from current prices, in my opinion. All as it offers solutions that can help its partners stop identity theft and fraud with real-time identification authentication and age verification with key documents, such as a driver’s license. Its solutions can also run effective checks on financial applicants for credit, for example.
Better, in recent weeks, Intellicheck signed an agreement with a prominent financial institution to help secure new account openings, lookups, and transactions. Tellers will use tablets equipped with Intellicheck’s mobile authentication technology for real-time ID.
Earnings growth has been solid, too.
In recent months, the company noted total revenue grew 144% to $3.11 million from $1.28 million year over year. Quarter over quarter SaaS revenue grew 160% to $2.238 million from $861,000 year over year, as well.
BIO-key International (BKYI)
At just 78 cents per share, BIO-key International is another interesting biometrics idea with solutions that allow for convenient and secure access to devices, information, applications and transactional information. Its software and hardware finger scanning solutions offer a solid alternative to password, PIN, and security card use.
In recent weeks, the company announced that a west coast state election office will deploy its authentication solution for secure statewide access to its voter registration database.
Even better news came from CEO Michael DePasquale:
“BIO-key navigated a very challenging and disappointing year from a revenue and cash flow standpoint, but laid the foundation for what we believe is the transformation of our company to play a leadership role in biometric multi-factor authentication as well as large scale Civil ID projects that are emerging on an international basis, particularly in Africa. We launched our BIO-key Africa subsidiary in late 2019 and so far this year we have executed agreements totaling over $75M in expected revenue over the next 24 months, and are focused on building on this momentum.”
Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.