Financial Review: Belden (BDC) vs. Inseego (INSG)

Belden (NYSE: BDC) and Inseego (NASDAQ:INSG) are both industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Insider & Institutional Ownership

12.1% of Inseego shares are owned by institutional investors. 1.3% of Belden shares are owned by insiders. Comparatively, 4.1% of Inseego shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Belden pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Inseego does not pay a dividend. Belden pays out 14.6% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Belden 3.90% 18.20% 6.98%
Inseego -30.71% N/A -24.17%

Valuation & Earnings

This table compares Belden and Inseego’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Belden $2.39 billion 1.30 $93.21 million $1.37 53.89
Inseego $243.55 million 0.45 -$60.57 million ($1.22) -1.52

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Belden and Inseego, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Belden 0 2 6 0 2.75
Inseego 0 1 1 0 2.50

Belden currently has a consensus price target of $91.33, indicating a potential upside of 23.71%. Inseego has a consensus price target of $1.88, indicating a potential upside of 0.81%. Given Belden’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Belden is more favorable than Inseego.

Volatility & Risk

Belden has a beta of 2.29, indicating that its stock price is 129% more volatile than the S&P 500. Comparatively, Inseego has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.

Summary

Belden beats Inseego on 12 of the 15 factors compared between the two stocks.

Belden Company Profile

Belden Inc. is a signal transmission solutions provider company. The Company operates through five segment: Broadcast Solutions (Broadcast), Enterprise Connectivity Solutions (Enterprise), Industrial Connectivity Solutions (Industrial Connectivity), Industrial IT Solutions (Industrial IT), and Network Security Solutions (Network Security). The segments design, manufacture, and market a portfolio of signal transmission solutions for applications used in a variety of end markets, including broadcast, enterprise, and industrial. The Company’s portfolio of signal transmission solutions provides transmission of data, sound, and video for various applications. The Company’s sells its products to distributors, end users, installers, and to original equipment manufacturers (OEMs). The Company has manufacturing facilities in the United States, other manufacturing and operating facilities in Brazil, Canada, China, Japan, Mexico, and St. Kitts, as well as in various countries in Europe.

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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