Inseego (NASDAQ: INSG) and West (NASDAQ:WSTC) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.
Insider & Institutional Ownership
12.1% of Inseego shares are held by institutional investors. Comparatively, 67.4% of West shares are held by institutional investors. 4.1% of Inseego shares are held by insiders. Comparatively, 4.6% of West shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
West pays an annual dividend of $0.45 per share and has a dividend yield of 1.9%. Inseego does not pay a dividend. West pays out 17.9% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Inseego and West, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Inseego currently has a consensus target price of $1.88, suggesting a potential upside of 20.97%. West has a consensus target price of $24.50, suggesting a potential upside of 4.26%. Given Inseego’s stronger consensus rating and higher probable upside, analysts plainly believe Inseego is more favorable than West.
Earnings and Valuation
This table compares Inseego and West’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Inseego||$243.55 million||0.37||-$60.57 million||($1.22)||-1.27|
West has lower revenue, but higher earnings than Inseego. Inseego is trading at a lower price-to-earnings ratio than West, indicating that it is currently the more affordable of the two stocks.
This table compares Inseego and West’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
West beats Inseego on 7 of the 12 factors compared between the two stocks.
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.
West Corporation is a provider of communication and network infrastructure services. The Company helps its clients communicate, collaborate and connect with their audiences through a portfolio of solutions that include unified communications services, safety services, and interactive services, such as automated notifications, specialized agent services and telecom services. The Company’s segments include Unified Communications Services, which includes collaboration services, Unified Communications as a Service (UCaaS) and telecom services; Safety Services, which includes carrier services, government solutions and advanced services; Interactive Services, including outbound (proactive notifications-voice, text/short messaging service (SMS) and chat), inbound speech solutions (interactive voice response or IVR), Web, mobile and professional services, and Specialized Agent Services, which includes healthcare advocacy services, cost management services and revenue generation.
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