DSP Group (NASDAQ: DSPG) and NETGEAR (NASDAQ:NTGR) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitabiliy, dividends, valuation and analyst recommendations.
Institutional & Insider Ownership
75.7% of DSP Group shares are held by institutional investors. Comparatively, 99.5% of NETGEAR shares are held by institutional investors. 6.0% of DSP Group shares are held by company insiders. Comparatively, 6.2% of NETGEAR shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares DSP Group and NETGEAR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares DSP Group and NETGEAR’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DSP Group||$133.28 million||1.95||$4.18 million||$0.13||90.00|
|NETGEAR||$1.36 billion||1.08||$134.02 million||$2.18||20.78|
NETGEAR has higher revenue and earnings than DSP Group. NETGEAR is trading at a lower price-to-earnings ratio than DSP Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for DSP Group and NETGEAR, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DSP Group currently has a consensus target price of $14.17, suggesting a potential upside of 21.08%. NETGEAR has a consensus target price of $63.00, suggesting a potential upside of 39.07%. Given NETGEAR’s higher possible upside, analysts plainly believe NETGEAR is more favorable than DSP Group.
Volatility & Risk
DSP Group has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, NETGEAR has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.
NETGEAR beats DSP Group on 10 of the 14 factors compared between the two stocks.
DSP Group Company Profile
DSP Group, Inc. is a global provider of wireless and audio chipset solutions for converged communications. Delivering semiconductor system solutions with software and hardware reference designs, the Company enables original equipment manufacturers, original design manufacturers, consumer electronics manufacturers and service providers to develop new products. Its segments include Home, Office and Mobile. The Home segment includes wireless chipset solutions for converged communication at home. The Office segment offers solution for Voice-over-Internet protocol (VoIP) office products, including office solutions that provide businesses with VoIP terminals with converged voice and data applications. The Mobile segment offers products for the mobile market that provides voice enhancement, always-on and far-end noise elimination targeted for mobile phone and mobile headsets and wearable devices that incorporate its noise suppression and voice quality enhancement HDClear technology.
NETGEAR Company Profile
NETGEAR, Inc. designs, develops and markets networking solutions and smart connected products for consumers, businesses and service providers. The Company’s product line consists of devices, such as network attached storage, Internet protocol (IP) security cameras, and home automation devices and services. The Company’s segments include retail, commercial and service provider. The retail business unit is focused on individual consumers and consists of whole home wireless fidelity (WiFi) networking solutions and Smart connected products. The commercial business unit is focused on small and medium-sized businesses and consists of business networking, storage and security solutions. The service provider business unit is focused on the service provider market and consists of made-to-order and retail-proven whole home networking hardware and software solutions, including fourth-generation (4G) long term evolution (LTE) hotspots sold to service providers for sale to their subscribers.
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