Head to Head Review: xG Technology (XGTI) versus Inseego (INSG)

xG Technology (NASDAQ: XGTI) and Inseego (NASDAQ:INSG) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

2.3% of xG Technology shares are owned by institutional investors. Comparatively, 12.1% of Inseego shares are owned by institutional investors. 2.8% of xG Technology shares are owned by company insiders. Comparatively, 4.1% of Inseego shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
xG Technology -20.76% -26.16% -15.69%
Inseego -30.71% N/A -24.17%

Valuation and Earnings

This table compares xG Technology and Inseego’s top-line 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 3.18 -$20.90 million N/A N/A
Inseego $243.55 million 0.47 -$60.57 million ($1.22) -1.61

xG Technology has higher earnings, but lower revenue than Inseego.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for xG Technology and Inseego, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
xG Technology 0 0 2 0 3.00
Inseego 0 1 1 0 2.50

xG Technology presently has a consensus target price of $3.75, indicating a potential upside of 164.08%. Inseego has a consensus target price of $1.88, indicating a potential downside of 4.82%. Given xG Technology’s stronger consensus rating and higher possible upside, analysts plainly believe xG Technology is more favorable than Inseego.

Risk & Volatility

xG Technology has a beta of -0.69, meaning that its share price is 169% less volatile than the S&P 500. Comparatively, Inseego has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Summary

xG Technology beats Inseego on 7 of the 12 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.

Inseego Company Profile

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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