Contrasting Airgain (AIRG) and QUALCOMM (QCOM)

Airgain (NASDAQ: AIRG) and QUALCOMM (NASDAQ:QCOM) are both large-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Airgain and QUALCOMM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Airgain 0 0 4 0 3.00
QUALCOMM 1 15 10 0 2.35

Airgain presently has a consensus price target of $16.83, suggesting a potential upside of 115.26%. QUALCOMM has a consensus price target of $64.34, suggesting a potential upside of 17.11%. Given Airgain’s stronger consensus rating and higher probable upside, analysts clearly believe Airgain is more favorable than QUALCOMM.

Profitability

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

Net Margins Return on Equity Return on Assets
Airgain 5.27% 9.22% 7.28%
QUALCOMM 11.06% 18.08% 9.45%

Risk and Volatility

Airgain has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, QUALCOMM has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Institutional & Insider Ownership

37.8% of Airgain shares are owned by institutional investors. Comparatively, 76.8% of QUALCOMM shares are owned by institutional investors. 23.4% of Airgain shares are owned by insiders. Comparatively, 0.2% of QUALCOMM shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Airgain and QUALCOMM’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Airgain $43.43 million 1.72 $3.73 million $0.31 25.23
QUALCOMM $22.29 billion 3.63 $5.71 billion $1.65 33.30

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

Dividends

QUALCOMM pays an annual dividend of $2.28 per share and has a dividend yield of 4.1%. Airgain does not pay a dividend. QUALCOMM pays out 138.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Airgain has raised its dividend for 6 consecutive years.

Summary

QUALCOMM beats Airgain on 10 of the 17 factors compared between the two stocks.

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.

About QUALCOMM

QUALCOMM Incorporated is engaged in the development and commercialization of a digital communication technology called code division multiple access (CDMA). The Company is engaged in the development and commercialization of the orthogonal frequency division multiple access (OFDMA) family of technologies, including long-term evolution (LTE), which is an Orthogonal Frequency Division Multiplexing (OFDM)-based standard that uses OFDMA and single-carrier Frequency Division Multiple Access (FDMA), for cellular wireless communication applications. The Company’s segments include QCT (Qualcomm CDMA Technologies), QTL (Qualcomm Technology Licensing) and QSI (Qualcomm Strategic Initiatives). The Company also develops and commercializes a range of other technologies used in handsets and tablets that contribute to end user demand. The Company’s products principally consist of integrated circuits (chips or chipsets) and system software used in mobile devices and in wireless networks.

What are top analysts saying about Airgain Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Airgain Inc. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit