Analyzing Inseego Corp. (INSG) & Towerstream (TWER)
Inseego Corp. (NASDAQ: INSG) and Towerstream (NASDAQ:TWER) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.
Risk & Volatility
Inseego Corp. has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, Towerstream has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.
This table compares Inseego Corp. and Towerstream’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
12.2% of Inseego Corp. shares are owned by institutional investors. Comparatively, 13.4% of Towerstream shares are owned by institutional investors. 4.1% of Inseego Corp. shares are owned by company insiders. Comparatively, 4.5% of Towerstream shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and price targets for Inseego Corp. and Towerstream, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Inseego Corp. currently has a consensus price target of $1.75, suggesting a potential upside of 62.04%. Given Inseego Corp.’s higher probable upside, equities analysts plainly believe Inseego Corp. is more favorable than Towerstream.
Earnings and Valuation
This table compares Inseego Corp. and Towerstream’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Inseego Corp.||$232.00 million||0.26||-$8.41 million||($1.33)||-0.81|
|Towerstream||$26.38 million||0.07||-$1.38 million||($8.58)||-0.01|
Towerstream has higher revenue, but lower earnings than Inseego Corp.. Inseego Corp. is trading at a lower price-to-earnings ratio than Towerstream, indicating that it is currently the more affordable of the two stocks.
Inseego Corp. beats Towerstream on 7 of the 12 factors compared between the two stocks.
About Inseego Corp.
Novatel Wireless, Inc. is a provider of intelligent wireless solutions for the mobile communications market. The Company’s range of products includes intelligent mobile hotspots, universal serial bus (USB) modems, embedded modules, integrated asset-management and mobile tracking machine-to-machine (M2M) devices, communications and applications software and cloud services. It operates in the wireless communications industry in two product categories: M2M Products and Solutions, and Mobile Computing Solutions. M2M Products and Solutions includes its M2M embedded modules, integrated M2M communications devices, Ctrack fleet management platform and its service delivery platforms, Crossroads, DMS, the N4A DM and N4A CMS that provide device management and service enablement. Mobile Computing Solutions includes its MiFi brand of intelligent mobile hotspot devices, USB modems and embedded modules that enable Internet access and data transmission and services via cellular wireless networks.
Towerstream Corporation is a provider of fixed wireless services to businesses in over 10 urban markets across the United States. The Company operates through Fixed Wireless Services (Fixed Wireless) segment. Its fixed wireless service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data and video services. Towerstream installs equipment on the rooftops of the buildings in which the Fixed Wireless segment customers operate and refer to these as Customer Locations. This equipment includes receivers and antennas, and a wireless connection is established between the Customer Location to one or more of its points of presence (PoPs). It provides fixed wireless broadband services to commercial customers and delivers access over a Wireless network transmitting over both regulated and unregulated radio spectrum. It provides services to business customers in various locations, including New York City, Boston, Chicago and Houston.
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