Comparing I.D. Systems (IDSY) & DragonWave (DRWI)
I.D. Systems (NASDAQ: IDSY) and DragonWave (NASDAQ:DRWI) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitabiliy, institutional ownership and earnings.
Insider & Institutional Ownership
44.1% of I.D. Systems shares are held by institutional investors. Comparatively, 14.7% of DragonWave shares are held by institutional investors. 13.8% of I.D. Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent recommendations and price targets for I.D. Systems and DragonWave, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
I.D. Systems currently has a consensus price target of $7.42, indicating a potential upside of 19.82%. DragonWave has a consensus price target of $2.77, indicating a potential upside of 264.47%. Given DragonWave’s higher possible upside, analysts clearly believe DragonWave is more favorable than I.D. Systems.
This table compares I.D. Systems and DragonWave’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
I.D. Systems has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, DragonWave has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.
Earnings and Valuation
This table compares I.D. Systems and DragonWave’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|I.D. Systems||$34.34 million||2.44||-$6.37 million||($0.58)||-10.67|
|DragonWave||$43.92 million||0.15||-$14.69 million||($3.51)||-0.22|
I.D. Systems has higher revenue, but lower earnings than DragonWave. I.D. Systems is trading at a lower price-to-earnings ratio than DragonWave, indicating that it is currently the more affordable of the two stocks.
I.D. Systems beats DragonWave on 9 of the 12 factors compared between the two stocks.
About I.D. Systems
I.D. Systems, Inc. (I.D. Systems) develops, markets and sells wireless machine-to-machine solutions for managing and securing enterprise assets, which include industrial vehicles, such as forklifts and airport ground support equipment, rental vehicles, and transportation assets, such as dry van trailers, refrigerated trailers, railcars and containers. Its systems utilize radio frequency identification (RFID), wireless fidelity (Wi-Fi), satellite or cellular communications, and sensor technology and software to control, track, monitor and analyze assets. It provides data reporting and analysis software tool platform, I.D. Systems Analytics PowerFleet IQ (for fleets of forklifts and other industrial trucks) and VeriWise IQ (for fleets of containers, trailers and other transportation assets). Its solutions include industrial and rental fleet asset management, industrial fleet asset management, transportation asset management and rental fleet asset management solutions.
DragonWave Inc (DragonWave) is a provider of packet microwave solutions for Internet protocol (IP) networks. The Company operates through broadband wireless backhaul equipment segment. The principal application of DragonWave’s products is mobile network backhaul. Additional applications include leased line replacement, last mile fiber extension and enterprise networks. The Company’s product lines include Harmony, Horizon, Avenue and NetViewer. The Harmony product line is a multi-service wireless platform enabling time division multiplexing (TDM) and packet-based services across wireless or wireline infrastructure. The Company’s Horizon product family is an Ethernet microwave portfolio and consists of Horizon Compact+ and Horizon Quantum. Its NetViewer is a multi-service, multi-product network management platform. The NetViewer enables provisioning, management, monitoring and configuration across the line of products in a single graphical user interface (GUI)-based system.
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