CalAmp Corp. (NASDAQ: CAMP) and pdvWireless (NASDAQ:PDVW) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Profitability

This table compares CalAmp Corp. and pdvWireless’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CalAmp Corp. -2.05% 18.84% 7.81%
pdvWireless -711.56% -15.52% -14.61%

Earnings & Valuation

This table compares CalAmp Corp. and pdvWireless’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CalAmp Corp. $348.04 million 1.83 $38.59 million ($0.21) -85.67
pdvWireless $5.21 million 77.20 -$27.65 million ($2.57) -10.86

CalAmp Corp. has higher revenue and earnings than pdvWireless. CalAmp Corp. is trading at a lower price-to-earnings ratio than pdvWireless, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

CalAmp Corp. has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, pdvWireless has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for CalAmp Corp. and pdvWireless, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CalAmp Corp. 0 5 5 0 2.50
pdvWireless 0 0 2 0 3.00

CalAmp Corp. presently has a consensus price target of $21.00, indicating a potential upside of 16.73%. pdvWireless has a consensus price target of $51.00, indicating a potential upside of 82.80%. Given pdvWireless’ stronger consensus rating and higher possible upside, analysts clearly believe pdvWireless is more favorable than CalAmp Corp..

Insider & Institutional Ownership

73.8% of CalAmp Corp. shares are held by institutional investors. Comparatively, 93.5% of pdvWireless shares are held by institutional investors. 5.3% of CalAmp Corp. shares are held by insiders. Comparatively, 10.9% of pdvWireless shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

CalAmp Corp. beats pdvWireless on 8 of the 13 factors compared between the two stocks.

About CalAmp Corp.

CalAmp Corp. (CalAmp) is a provider of wireless communications solutions for a range of applications to customers globally. The Company operates through two business segments: Wireless DataCom and Satellite. The Company’s Wireless DataCom segment offers solutions for mobile resource management (MRM) applications, the machine-to-machine (M2M) communications space and other markets that require connectivity anytime and anywhere. The Company’s MRM and M2M solutions collect, monitor and report data and intelligence from remote and mobile assets. The Company delivers products, software services and solutions for energy, government, transportation and automotive vertical markets. The Company’s Satellite segment develops, manufactures and sells direct-broadcast satellite (DBS) outdoor customer premise equipment and whole home video networking devices enabling the delivery of digital and high definition satellite television services. Its satellite products are sold primarily to EchoStar.

About pdvWireless

pdvWireless, Inc., formerly Pacific DataVision, Inc., is a wireless communications carrier and a provider of mobile workforce communication and location-based solutions. The Company’s solutions focus on enhancing the productivity of its customers’ field-based workers, and the efficiency of their dispatch and call center operations. The Company is deploying and operating the two-way radio networks that offer push-to-talk (PTT) communications services to primarily dispatch-centric, small and medium-sized businesses. The Company has launched its PTT networks in markets throughout the United States. The Company offers its DispatchPlus service, which combines pdvConnect, its suite of mobile communication and workforce management applications with digital network architecture and mobile devices. Developed for dispatch-centric businesses, pdvConnect enables businesses to locate and communicate with their field workers.

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