Financial Review: TESSCO Technologies (TESS) versus XG Technology (XGTI)
TESSCO Technologies (NASDAQ: TESS) and XG Technology (NASDAQ:XGTI) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.
This table compares TESSCO Technologies and XG Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares TESSCO Technologies and XG Technology’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TESSCO Technologies||$544.45 million||0.20||$7.18 million||$0.25||51.60|
|XG Technology||$27.54 million||0.70||-$14.61 million||N/A||N/A|
TESSCO Technologies has higher revenue and earnings than XG Technology.
Insider and Institutional Ownership
58.7% of TESSCO Technologies shares are owned by institutional investors. Comparatively, 2.3% of XG Technology shares are owned by institutional investors. 26.9% of TESSCO Technologies shares are owned by company insiders. Comparatively, 2.8% of XG Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility and Risk
TESSCO Technologies has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, XG Technology has a beta of -0.83, suggesting that its stock price is 183% less volatile than the S&P 500.
TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 6.2%. XG Technology does not pay a dividend. TESSCO Technologies pays out 320.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of recent ratings and recommmendations for TESSCO Technologies and XG Technology, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
XG Technology has a consensus target price of $3.75, suggesting a potential upside of 125.90%. Given XG Technology’s higher possible upside, analysts plainly believe XG Technology is more favorable than TESSCO Technologies.
TESSCO Technologies beats XG Technology on 9 of the 13 factors compared between the two stocks.
About TESSCO Technologies
TESSCO Technologies Incorporated architects and delivers the product and value chain solutions to organizations responsible for building, operating, maintaining and reselling cellular, mobile communications, wireless-fidelity (Wi-Fi), machine-to-machine, Internet of Things and wireless backhaul systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing Internet and information technology. Its customers include a diversified mix of carrier and public network operators, tower owners, program managers, contractors and integrators, wireless Internet service providers, industrial and enterprise self-maintained users (including railroads, utilities, mining operators, oil and gas operators and technicians), governments, manufacturers, value-added resellers, tier 1, 2 and 3 retail carrier stores and their independent agents, dealers and consumers, as well as other local and national retailers.
About XG Technology
xG Technology, Inc. develops a portfolio of intellectual property, which is embedded in its software algorithms that offer cognitive interference mitigation and spectrum access solutions for a range of applications using commercial off the shelf devices. The Company is a provider of wireless video solutions to broadcast, law enforcement and defense markets, and private mobile broadband networks for use in a range of environments. The Company markets its technology solutions across three business units: Integrated Microwave Technologies (IMT), Vislink Communication Systems and xMax. The Company offers a range of frequency-agnostic cognitive radio solutions. It focuses on various industries across the world, such as telecommunications, cable, defense and public safety, municipal governments, critical infrastructure and markets ranging from rural to urban areas and expeditionary deployments.
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