by SEEKING ALPHA
ShotSpotter and Patriot One provide threat-detection solutions aimed at reducing overall violent crime. ShotSpotter utilizes a reactionary detection method while Patriot One’s preventative system detects threats prior to a violent incident occuring.
Patriot One’s PATSCAN detection system can detect a wider variety of weapon than ShotSpotter and can be installed for a fraction of the price.
With violent crime rates rising consistently over the past few years, public and municipal demand for systems that can detect threats and alert the proper channels has grown rapidly. This has created viable market opportunities for two of the leading threat-detection companies on the markets today, ShotSpotter (SSTI) and Patriot One Technologies (OTCQX:PTOTF). While both companies offer methods to improve response times and deter individuals from committing violent acts, Patriot One can detect a wider variety of weapons and threats at a lower cost than ShotSpotter, making it the ideal choice for the larger non-municipal markets, and the best investment for investors looking to get long-term exposure to the threat-detection industry.
ShotSpotter is a Bay Area threat-detection company that has grown from a small startup founded in 1996 to a $500MM public company whose share price has risen 240% since its IPO in June 2017. ShotSpotter’s eponymous flagship product is a gunshot detection system that constantly scans for and reports gunfire to the proper authority channels. Law enforcement agencies who have installed ShotSpotter in their cities say that the technology has drastically reduced gunshot response times. Response times that could take up to 5 minutes have been reduced to times as low as 30 seconds. This efficiency is a result of phasing out traditional 911 calls by having the ShotSpotter system automatically record the location of the gunshots and relay that information to the proper law enforcement channels. The company’s research has found that 80% of gunshots are never reported to 911, which heavily contributed to the high unsolved murder rate that the Washington Post reported to be over 50% in the past decade. Currently, ShotSpotter has over 12,000 sensors installed in 90 municipalities which collectively cover 550 square miles of public space. The ShotSpotter network recorded and reported over 99,000 instances of shooting activity in 2017 alone. To further improve their technology, ShotSpotter records and analyzes every gunshot their sensors detect in their database to improve the detection accuracy by giving it a data set for gunshot comparison to identify which specific firearm was discharged.