Airgain (NASDAQ:AIRG – Get Free Report) and Viavi Solutions (NASDAQ:VIAV – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Profitability
This table compares Airgain and Viavi Solutions’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Airgain | -13.32% | -20.39% | -13.99% |
Viavi Solutions | 0.49% | 6.08% | 2.38% |
Risk and Volatility
Airgain has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Airgain | 0 | 0 | 2 | 0 | 3.00 |
Viavi Solutions | 1 | 2 | 5 | 0 | 2.50 |
Airgain presently has a consensus price target of $9.25, indicating a potential upside of 121.29%. Viavi Solutions has a consensus price target of $12.69, indicating a potential upside of 26.88%. Given Airgain’s stronger consensus rating and higher possible upside, analysts clearly believe Airgain is more favorable than Viavi Solutions.
Earnings and Valuation
This table compares Airgain and Viavi Solutions”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Airgain | $60.60 million | 0.81 | -$8.69 million | ($0.69) | -6.06 |
Viavi Solutions | $1.00 billion | 2.23 | -$25.80 million | $0.02 | 500.00 |
Airgain has higher earnings, but lower revenue than Viavi Solutions. Airgain is trading at a lower price-to-earnings ratio than Viavi Solutions, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
52.8% of Airgain shares are held by institutional investors. Comparatively, 95.5% of Viavi Solutions shares are held by institutional investors. 17.8% of Airgain shares are held by insiders. Comparatively, 1.5% of Viavi Solutions shares are held 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.
Summary
Viavi Solutions beats Airgain on 10 of the 14 factors compared between the two stocks.
About Airgain
Airgain, Inc. provides wireless connectivity solutions that creates and delivers embedded components, external antennas, and integrated systems worldwide. The company's products include MaxBeam embedded antennas; profile embedded antennas; profile contour embedded antennas; profile ceramic embedded antenna; ultra embedded antennas; and SmartMax embedded antennas. It offers embedded and NimbeLink embedded moderms; custom cellular solutions; cellular IoT development; cellular IoT development kits; and IoT data plans. In addition, the company provides 5G connectivity, smart repeaters, and fixed wireless access; asset tracking solutions, devices, and partners; and external antennas, fleet antennas, IoT antennas, network antennas, vehicle networking, partner solutions, and accessories. It offers its products under the Antenna Plus brand. It serves industrial, consumer, automotive fleet, enterprise, energy, medical, transportation, agriculture, services, and public safety markets. The company was formerly known as AM Group and changed its name to Airgain, Inc. in 2004. Airgain, Inc. was incorporated in 1995 and is headquartered in San Diego, California.
About Viavi Solutions
Viavi Solutions, Inc. engages in the provision of network test, monitoring, and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It operates through the following segments: Network Enablement, Service Enablement, and Optical Security and Performance. The Network Enablement segment offers an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. The Service Enablement segment covers solutions and services primarily for communication service providers, and enterprises that deliver and/or operate broadband and IP networks (fixed and mobile) supporting voice, video, and data services as well as a wide range of applications. The Optical Security and Performance segment leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell products targeting anti-counterfeiting, consumer and industrial, government, healthcare, and other markets. The company was founded in 1979 and is headquartered in Chandler, AZ.
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