"look at all bluechip stocks.. they all have big institutional...

"look at all bluechip stocks.. they all have big institutional backing..." – I think you're putting the result before the cause. Blue chip stocks have big institutional backing because they're blue chip, not the other way around. You can't possibly get any value from comparing the shareholder makeup of say WiseTech with DroneShield.

They live in different worlds:

1. A micro-cap like DroneShield doesn't have the liquidity to even allow a large institutional holder to take a meaningful position without buying a substantial chunk of the company.
2. A large institution can shove the share price of DroneShield around all over the place using just lunch money. This isn't possible with a blue chip.
3. Blue chip stocks are constantly monitored closely by dozens of analysts across many brokerages and institutions so at any given time the range of many sentiments balances out to a solid average price on the market that is closely reflective of current conditions. A stock like Droneshield gets an occasional glance from a handful of analysts so most of the time investors really have to make up their own individual minds, which with limited liquidity means that the share price can drift around over a considerable range without correction.