Alcatel Lucent SA (NYSE: ALU) and Airgain (NASDAQ:AIRG) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitabiliy.

Insider and Institutional Ownership

7.7% of Airgain shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Alcatel Lucent SA and Airgain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alcatel Lucent SA 14.83% 86.14% 10.96%
Airgain 3.42% 3.40% 2.78%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Alcatel Lucent SA and Airgain, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alcatel Lucent SA 0 0 0 0 N/A
Airgain 0 0 4 0 3.00

Airgain has a consensus price target of $20.33, indicating a potential upside of 41.20%. Given Airgain’s higher probable upside, analysts clearly believe Airgain is more favorable than Alcatel Lucent SA.

Earnings & Valuation

This table compares Alcatel Lucent SA and Airgain’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alcatel Lucent SA N/A N/A N/A N/A N/A
Airgain $46.17 million 2.97 $4.63 million N/A N/A

Airgain has higher revenue and earnings than Alcatel Lucent SA.

Summary

Airgain beats Alcatel Lucent SA on 5 of the 8 factors compared between the two stocks.

About Alcatel Lucent SA

Alcatel Lucent SA is a provider of Internet protocol (IP) networking, ultra-broadband access and cloud technology solutions. The Company operates through two segments for the networks business. The Ultra Broadband Networks segment consists of Mobile Networks and Fixed Networks business groups. The IP Networks and Applications segment consists of Internet protocol (IP)/Optical Networks and Applications and Analytics business groups. Its other segment consists of businesses run as separate operations (Alcatel Submarine Networks and Radio Frequency Systems (RFS)). The Company offers a range of solutions, including Communications and collaboration, IP Core Routing, IP/optical integration, long term evolution (LTE) Ultra-Broadband, Software-defined networking and Vplus. The Company offers a range of consulting, managed, maintenance and professional services, including Bell Labs Consulting and Build, Operate and Manage (BOM) Solution for Mobility Networks. The main shareholder is Nokia.

About Airgain

Airgain, Inc. is a provider of embedded antenna technologies used to enable wireless networking across a range of home, enterprise and industrial devices. The Company’s antennas are found in devices deployed in carrier, enterprise and residential wireless networks and systems, including set top boxes, access points, routers, gateways and digital televisions. It offers six product lines, including MaxBeam High Gain Embedded Antennas, Profile Embedded Antennas, Profile Contour Embedded Antennas, Ultra Embedded Antennas, OmniMax High Performance External Antennas and MaxBeam Carrier Class Antennas. The Company, through its design, integration and testing of embedded antenna technology, provides its technology to the residential wireless local area network, wireless fidelity and antenna market, and also supplies to carriers, original equipment manufacturers, original design manufacturers and system designers. The Company supplies its products in the United States, Europe, Canada and Asia.

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