Critical Comparison: ADTRAN (ADTN) versus Airgain (AIRG)
ADTRAN (NASDAQ: ADTN) and Airgain (NASDAQ:AIRG) 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 earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Earnings and Valuation
This table compares ADTRAN and Airgain’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ADTRAN||$636.78 million||1.72||$35.22 million||$0.89||25.56|
|Airgain||$43.43 million||2.00||$3.73 million||$0.17||53.24|
Insider and Institutional Ownership
91.4% of ADTRAN shares are owned by institutional investors. Comparatively, 24.5% of Airgain shares are owned by institutional investors. 3.0% of ADTRAN shares are owned by insiders. Comparatively, 23.4% of Airgain shares are owned by 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 breakdown of current ratings and price targets for ADTRAN and Airgain, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ADTRAN currently has a consensus target price of $24.00, indicating a potential upside of 5.49%. Airgain has a consensus target price of $15.75, indicating a potential upside of 74.03%. Given Airgain’s stronger consensus rating and higher possible upside, analysts clearly believe Airgain is more favorable than ADTRAN.
This table compares ADTRAN and Airgain’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
ADTRAN has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Airgain has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.
ADTRAN pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. Airgain does not pay a dividend. ADTRAN pays out 40.4% of its earnings in the form of a dividend.
ADTRAN, Inc. (ADTRAN) is a provider of networking and communications equipment. The Company’s solutions enable voice, data, video and Internet communications across a range of network infrastructures. It operates through two segments: Network Solutions and Services & Support. Network Solutions includes software and hardware products that enable CSPs and enterprise customers to realize a fully connected world. It provides a full-range of network implementation, maintenance and managed services. Its solutions include Access & Aggregation, Customer Devices, and Traditional & Other Products. Its Access & Aggregation solutions are used by communications service providers (CSPs) to connect their network infrastructure to their subscribers. The portfolio of ADTRAN solutions within Access & Aggregation category includes a range of modular or fixed physical form factors designed to deliver the technology and economic fit based on the target subscriber density and environmental conditions.
Airgain, Inc. is a provider of embedded antenna technologies used to enable wireless networking across a range of home, enterprise and industrial devices. The Company’s antennas are found in devices deployed in carrier, enterprise and residential wireless networks and systems, including set top boxes, access points, routers, gateways and digital televisions. It offers six product lines, including MaxBeam High Gain Embedded Antennas, Profile Embedded Antennas, Profile Contour Embedded Antennas, Ultra Embedded Antennas, OmniMax High Performance External Antennas and MaxBeam Carrier Class Antennas. The Company, through its design, integration and testing of embedded antenna technology, provides its technology to the residential wireless local area network, wireless fidelity and antenna market, and also supplies to carriers, original equipment manufacturers, original design manufacturers and system designers. The Company supplies its products in the United States, Europe, Canada and Asia.
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