Analyzing West (WSTC) and Inseego (INSG)
West (NASDAQ: WSTC) and Inseego (NASDAQ:INSG) are both small-cap communications & networking – nec companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.
Earnings & Valuation
This table compares West and Inseego’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Inseego||$243.55 million||0.39||-$60.57 million||($1.22)||-1.32|
This is a breakdown of recent ratings and target prices for West and Inseego, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
West currently has a consensus price target of $24.50, suggesting a potential upside of 4.26%. Inseego has a consensus price target of $1.88, suggesting a potential upside of 16.46%. Given Inseego’s stronger consensus rating and higher probable upside, analysts clearly believe Inseego is more favorable than West.
Insider and Institutional Ownership
67.4% of West shares are owned by institutional investors. Comparatively, 12.1% of Inseego shares are owned by institutional investors. 4.6% of West 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 company will outperform the market over the long term.
This table compares West and Inseego’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
West pays an annual dividend of $0.45 per share and has a dividend yield of 1.9%. Inseego does not pay a dividend. West pays out 17.9% of its earnings in the form of a dividend.
West beats Inseego on 6 of the 11 factors compared between the two stocks.
West Corporation is a provider of communication and network infrastructure services. The Company helps its clients communicate, collaborate and connect with their audiences through a portfolio of solutions that include unified communications services, safety services, and interactive services, such as automated notifications, specialized agent services and telecom services. The Company’s segments include Unified Communications Services, which includes collaboration services, Unified Communications as a Service (UCaaS) and telecom services; Safety Services, which includes carrier services, government solutions and advanced services; Interactive Services, including outbound (proactive notifications-voice, text/short messaging service (SMS) and chat), inbound speech solutions (interactive voice response or IVR), Web, mobile and professional services, and Specialized Agent Services, which includes healthcare advocacy services, cost management services and revenue generation.
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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