Critical Review: RR Media (RRM) versus CalAmp (CAMP)

RR Media (NASDAQ: RRM) and CalAmp (NASDAQ:CAMP) are both wireless telecommunications services – nec companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Earnings and Valuation

This table compares RR Media and CalAmp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RR Media N/A N/A N/A $0.46 28.37
CalAmp $351.10 million 2.26 -$7.90 million $0.49 45.37

RR Media has higher earnings, but lower revenue than CalAmp. RR Media is trading at a lower price-to-earnings ratio than CalAmp, indicating that it is currently the more affordable of the two stocks.

Dividends

RR Media pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. CalAmp does not pay a dividend. RR Media pays out 60.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings for RR Media and CalAmp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RR Media 0 0 0 0 N/A
CalAmp 1 1 5 0 2.57

CalAmp has a consensus price target of $25.00, suggesting a potential upside of 12.46%. Given CalAmp’s higher probable upside, analysts plainly believe CalAmp is more favorable than RR Media.

Insider and Institutional Ownership

72.1% of CalAmp shares are owned by institutional investors. 5.3% of CalAmp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares RR Media and CalAmp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RR Media 3.49% 5.83% 3.07%
CalAmp 5.00% 19.20% 7.92%

Summary

CalAmp beats RR Media on 11 of the 12 factors compared between the two stocks.

About RR Media

MX1 Ltd, formerly RR Media Ltd, is an Israel-based global media services provider. It is a media globalize company that works with media businesses to transform content into a viewer experience for a global audience. MX1 Ltd offers a range of content management, delivery and digital media services. It distributes more than 1000 television (TV) channels, manages the play out of more than 400 channels and delivers syndicated content to more than 120 subscription Video on Demand (VOD) platforms. The Company has offices worldwide and operates global media centers, enabling customers to reach people around the world. MX1 Ltd is a wholly-owned subsidiary of SES, Euronext Paris and Luxembourg Stock Exchange: SESG.

About CalAmp

CalAmp Corp. (CalAmp) is a provider of wireless communications solutions for a range of applications to customers globally. The Company operates through two business segments: Wireless DataCom and Satellite. The Company’s Wireless DataCom segment offers solutions for mobile resource management (MRM) applications, the machine-to-machine (M2M) communications space and other markets that require connectivity anytime and anywhere. The Company’s MRM and M2M solutions collect, monitor and report data and intelligence from remote and mobile assets. The Company delivers products, software services and solutions for energy, government, transportation and automotive vertical markets. The Company’s Satellite segment develops, manufactures and sells direct-broadcast satellite (DBS) outdoor customer premise equipment and whole home video networking devices enabling the delivery of digital and high definition satellite television services. Its satellite products are sold primarily to EchoStar.

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