NEW YORK (TheStreet) -- Shares of TASER International (TASR) were gaining 4.2% to $25.32 Tuesday after competitor Digital Ally (DGLY) - Get Reportreported its fourth quarter results and a strong guidance for 2015.

Digital Ally reported earnings of 5 cents a share for the fourth quarter, up from a loss of 50 cents a share in the fourth quarter of 2013. Revenue increased 54.3% year over year to $5.4 million for the quarter.

Looking to full year 2015 Digital Ally said it expects revenue of $25 million, up from $17.4 million in 2014, and operating income of $2.5 million, up from an operating loss of $2.9 million in 2014.

Analyst estimates were not available for Digital Ally's earnings and guidance.

Digital Ally CEO Stanton Ross said demand for the company's body cameras design for police officers "increased at a faster pace than the current capacity of suppliers of certain components, but we have taken steps to address this issue."

TASER International competes with Digital Ally in the body-worn camera space.

TheStreet Ratings team rates TASER INTERNATIONAL INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate TASER INTERNATIONAL INC (TASR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The revenue growth came in higher than the industry average of 0.4%. Since the same quarter one year prior, revenues rose by 17.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
• TASR's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.50, which clearly demonstrates the ability to cover short-term cash needs.
• Net operating cash flow has increased to $12.79 million or 36.98% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 20.78%.
• Compared to its closing price of one year ago, TASR's share price has jumped by 33.68%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
• TASER INTERNATIONAL INC's earnings per share declined by 10.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TASER INTERNATIONAL INC increased its bottom line by earning $0.36 versus $0.34 in the prior year. This year, the market expects an improvement in earnings ($0.39 versus $0.36).
• You can view the full analysis from the report here: TASR Ratings Report