Commscope (NASDAQ: COMM) and Inseego (NASDAQ:INSG) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Earnings & Valuation

This table compares Commscope and Inseego’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Commscope $4.92 billion 1.42 $222.83 million $0.99 36.96
Inseego $243.55 million 0.44 -$60.57 million ($1.22) -1.49

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

Profitability

This table compares Commscope and Inseego’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Commscope 4.21% 29.11% 5.97%
Inseego -30.71% N/A -24.17%

Volatility & Risk

Commscope has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Inseego has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Commscope and Inseego, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Commscope 0 5 7 0 2.58
Inseego 0 1 1 0 2.50

Commscope currently has a consensus target price of $40.78, indicating a potential upside of 11.45%. Inseego has a consensus target price of $1.88, indicating a potential upside of 3.02%. Given Commscope’s stronger consensus rating and higher possible upside, equities analysts clearly believe Commscope is more favorable than Inseego.

Insider and Institutional Ownership

12.1% of Inseego shares are owned by institutional investors. 3.3% of Commscope shares are owned by insiders. Comparatively, 4.1% of Inseego shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Commscope beats Inseego on 11 of the 13 factors compared between the two stocks.

About Commscope

CommScope Holding Company, Inc. (CommScope) is a provider of infrastructure solutions for the core, access and edge layers of communications networks. The Company operates through two segments: CommScope Connectivity Solutions (CCS) and CommScope Mobility Solutions (CMS). Its portfolio includes wireless and fiber optic solutions. The Company’s solutions are found in the venues and outdoor spaces, including in data centers and buildings of all shapes, sizes and complexities; at wireless cell sites; in telecom central offices and cable head ends; in fiber-to-the-X (FTTX) deployments, and in airports, trains and tunnels. As of December 31, 2016, it served customers in over 100 countries through a network of more than 30 manufacturing and distribution facilities located around the globe. Its customers include global telecommunication operators and enterprise customers, including Fortune 500 enterprises and multi-system operators (MSOs).

About Inseego

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.

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