Iteris (NYSE: ITI) and NETGEAR (NASDAQ:NTGR) are both small-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitabiliy, earnings, risk, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Iteris and NETGEAR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iteris 0 0 3 0 3.00
NETGEAR 1 2 4 0 2.43

Iteris presently has a consensus price target of $8.33, indicating a potential upside of 28.21%. NETGEAR has a consensus price target of $63.00, indicating a potential upside of 43.18%. Given NETGEAR’s higher probable upside, analysts clearly believe NETGEAR is more favorable than Iteris.

Earnings & Valuation

This table compares Iteris and NETGEAR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Iteris $95.98 million 2.20 -$1.72 million N/A N/A
NETGEAR $1.34 billion 1.07 $143.73 million $2.22 19.82

NETGEAR has higher revenue and earnings than Iteris.

Insider and Institutional Ownership

98.8% of NETGEAR shares are owned by institutional investors. 6.2% of NETGEAR shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Iteris and NETGEAR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Iteris -13.64% -33.30% -22.30%
NETGEAR 5.61% 11.30% 7.90%

Summary

NETGEAR beats Iteris on 9 of the 11 factors compared between the two stocks.

About Iteris

Iteris, Inc. is a provider of information solutions for both the traffic management and global agribusiness markets. The Company operates through three segments: Roadway Sensors, Transportation Systems and Performance Analytics. The Roadway Sensors segment provides various vehicle detection and information systems and products for traffic intersection control, incident detection and roadway traffic data collection applications. The Transportation Systems segment includes transportation engineering and consulting services, and the development of transportation management and traveler information systems for the Intelligent Transportation Systems (ITS) industry. The Performance Analytics segment includes iPeMS, its specialized transportation performance measurement and traffic analytics solutions, as well as ClearPath Weather, its road-maintenance applications, and ClearAg, its precision agriculture solutions.

About NETGEAR

NETGEAR, Inc. designs, develops and markets networking solutions and smart connected products for consumers, businesses and service providers. The Company’s product line consists of devices, such as network attached storage, Internet protocol (IP) security cameras, and home automation devices and services. The Company’s segments include retail, commercial and service provider. The retail business unit is focused on individual consumers and consists of whole home wireless fidelity (WiFi) networking solutions and Smart connected products. The commercial business unit is focused on small and medium-sized businesses and consists of business networking, storage and security solutions. The service provider business unit is focused on the service provider market and consists of made-to-order and retail-proven whole home networking hardware and software solutions, including fourth-generation (4G) long term evolution (LTE) hotspots sold to service providers for sale to their subscribers.

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