Airgain (AIRG) and Oclaro (OCLR) Head to Head Review

Oclaro (NASDAQ: OCLR) and Airgain (NASDAQ:AIRG) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings for Oclaro and Airgain, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oclaro 0 3 10 1 2.86
Airgain 0 0 4 0 3.00

Oclaro currently has a consensus price target of $10.54, indicating a potential upside of 57.06%. Airgain has a consensus price target of $15.75, indicating a potential upside of 65.96%. Given Airgain’s stronger consensus rating and higher probable upside, analysts plainly believe Airgain is more favorable than Oclaro.

Risk and Volatility

Oclaro has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Airgain has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.

Earnings & Valuation

This table compares Oclaro and Airgain’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oclaro $600.97 million 1.88 $127.85 million $0.82 8.18
Airgain $43.43 million 2.09 $3.73 million $0.17 55.83

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

Profitability

This table compares Oclaro and Airgain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oclaro 23.00% 23.17% 17.91%
Airgain 3.34% 5.95% 4.88%

Institutional and Insider Ownership

70.7% of Oclaro shares are held by institutional investors. Comparatively, 27.3% of Airgain shares are held by institutional investors. 2.0% of Oclaro shares are held by company insiders. Comparatively, 23.4% of Airgain shares are held by company 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.

Summary

Oclaro beats Airgain on 9 of the 15 factors compared between the two stocks.

About Oclaro

Oclaro, Inc. is a provider of optical components, modules and subsystems for the core optical transport, service provider, enterprise and data center markets. The Company provides various solutions for optical networks and interconnects driving the next wave of streaming video, cloud computing, application virtualization and other bandwidth-intensive and high-speed applications. The Company’s product offerings include client side transceivers, line side transceivers, tunable laser transmitters, lithium niobate modulators, transponder modules, and discrete lasers and receivers. It designs, manufactures and markets optical components, modules and subsystems that generate, detect, combine and separate light signals in optical communications networks. The Company supplies transmission products at the component level and the module level into 10 gigabits per second (Gb/s), 40 Gb/s and 100 Gb/s communications solutions.

About Airgain

Airgain, Inc. is a provider of embedded antenna technologies used to enable wireless networking across a range of home, enterprise and industrial devices. The Company’s antennas are found in devices deployed in carrier, enterprise and residential wireless networks and systems, including set top boxes, access points, routers, gateways and digital televisions. It offers six product lines, including MaxBeam High Gain Embedded Antennas, Profile Embedded Antennas, Profile Contour Embedded Antennas, Ultra Embedded Antennas, OmniMax High Performance External Antennas and MaxBeam Carrier Class Antennas. The Company, through its design, integration and testing of embedded antenna technology, provides its technology to the residential wireless local area network, wireless fidelity and antenna market, and also supplies to carriers, original equipment manufacturers, original design manufacturers and system designers. The Company supplies its products in the United States, Europe, Canada and Asia.

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