InterDigital (IDCC) versus XG Technology (XGTI) Critical Analysis
XG Technology (NASDAQ: XGTI) and InterDigital (NASDAQ:IDCC) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Insider and Institutional Ownership
2.3% of XG Technology shares are held by institutional investors. Comparatively, 72.9% of InterDigital shares are held by institutional investors. 2.8% of XG Technology shares are held by insiders. Comparatively, 1.9% of InterDigital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares XG Technology and InterDigital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
XG Technology has a beta of -0.72, suggesting that its share price is 172% less volatile than the S&P 500. Comparatively, InterDigital has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
This is a summary of current ratings and target prices for XG Technology and InterDigital, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
XG Technology currently has a consensus price target of $3.75, indicating a potential upside of 125.90%. InterDigital has a consensus price target of $94.00, indicating a potential upside of 21.68%. Given XG Technology’s stronger consensus rating and higher probable upside, research analysts plainly believe XG Technology is more favorable than InterDigital.
InterDigital pays an annual dividend of $1.40 per share and has a dividend yield of 1.8%. XG Technology does not pay a dividend. InterDigital pays out 19.3% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares XG Technology and InterDigital’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|XG Technology||$6.57 million||3.71||-$20.90 million||N/A||N/A|
|InterDigital||$665.85 million||4.03||$309.00 million||$7.24||10.67|
InterDigital has higher revenue and earnings than XG Technology.
InterDigital beats XG Technology on 9 of the 13 factors compared between the two stocks.
XG Technology Company Profile
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.
InterDigital Company Profile
InterDigital, Inc. designs and develops technologies for wireless communications. The Company is focused on three technology areas: cellular wireless technology, Internet of things (IoT) technology, and, through its Hillcrest Laboratories, Inc. (Hillcrest Labs) subsidiary, sensor and sensor fusion technology. It offers a range of technologies that are used in digital cellular and wireless products and networks, including second generation (2G), third generation (3G), fourth generation (4G) and IEEE 802-related products and networks. Products incorporating its inventions include mobile devices, such as cellular phones, tablets, notebook computers and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; components, dongles and modules for wireless devices, and IoT devices and software platforms. The Company is developing a range of technologies in the areas of video compression and delivery, security, analytics, and other areas.
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