Boingo Wireless (NASDAQ: WIFI) and NQ Mobile (NYSE:NQ) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitabiliy, analyst recommendations and valuation.

Earnings and Valuation

This table compares Boingo Wireless and NQ Mobile’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Boingo Wireless $169.18 million 3.54 $34.37 million ($0.63) -24.38
NQ Mobile $343.05 million 0.90 $2.27 million ($1.41) -2.51

Boingo Wireless has higher revenue, but lower earnings than NQ Mobile. Boingo Wireless is trading at a lower price-to-earnings ratio than NQ Mobile, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Boingo Wireless has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, NQ Mobile has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Boingo Wireless and NQ Mobile, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boingo Wireless 1 0 7 0 2.75
NQ Mobile 0 0 1 0 3.00

Boingo Wireless presently has a consensus target price of $15.04, suggesting a potential downside of 2.06%. NQ Mobile has a consensus target price of $13.00, suggesting a potential upside of 267.23%. Given NQ Mobile’s stronger consensus rating and higher possible upside, analysts plainly believe NQ Mobile is more favorable than Boingo Wireless.

Profitability

This table compares Boingo Wireless and NQ Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boingo Wireless -14.32% -24.60% -6.53%
NQ Mobile -41.05% -0.44% -0.28%

Insider and Institutional Ownership

88.9% of Boingo Wireless shares are held by institutional investors. Comparatively, 6.8% of NQ Mobile shares are held by institutional investors. 7.7% of Boingo Wireless shares are held by insiders. Comparatively, 15.5% of NQ Mobile shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

NQ Mobile beats Boingo Wireless on 7 of the 13 factors compared between the two stocks.

About Boingo Wireless

Boingo Wireless, Inc. is a provider of commercial mobile wireless fidelity (Wi-Fi) Internet solutions and indoor direct-attached storage (DAS) services. The Company operates as a service provider of wireless connectivity solutions across its managed and operated network and aggregated network for mobile devices such as laptops, smartphones, tablets and other wireless-enabled consumer devices. It acquires long-term wireless rights at venues, such as airports, transportation hubs, stadiums, arenas, universities, convention centers, and office campuses; builds wireless networks, such as DAS, Wi-Fi and small cells at those venues, and monetizes the wireless networks through a range of products and services. As of December 31, 2016, the Company operated 36 DAS networks containing approximately 19,200 DAS nodes. Its Wi-Fi network includes locations that the Company manages and operates, as well as networks managed and operated by third-parties with whom it contracts for access.

About NQ Mobile

NQ Mobile Inc. is a global provider of mobile Internet services. The Company provides a portfolio of offerings, including mobile game publishing platforms, mobile advertising platforms, mobile entertainment applications and platforms, mobile security and productivity applications, as well as other mobile applications. It operates through two segments: consumer and enterprise. The consumer segment primarily consists of mobile value added services, which includes mobile security services, mobile games and live mobile social video platform, advertising services and other services. The enterprise segment mainly consists of technology and software development services and hardware sales aggregated under enterprise mobility revenues. It offers a range of products and services to consumers and enterprises. Its product and service offerings provide mobile privacy and productivity, and also offer additional mobile value added services, such as mobile games and other mobile applications.

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