Resonant (NASDAQ: RESN) and Micrel (NASDAQ:MCRL) are both small-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Insider and Institutional Ownership
10.1% of Resonant shares are held by institutional investors. 22.3% of Resonant shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current ratings and target prices for Resonant and Micrel, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Resonant currently has a consensus target price of $9.50, suggesting a potential upside of 101.70%. Given Resonant’s higher possible upside, research analysts clearly believe Resonant is more favorable than Micrel.
Risk and Volatility
Resonant has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Micrel has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
This table compares Resonant and Micrel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Resonant and Micrel’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
Micrel has lower revenue, but higher earnings than Resonant. Resonant is trading at a lower price-to-earnings ratio than Micrel, indicating that it is currently the more affordable of the two stocks.
Micrel beats Resonant on 6 of the 11 factors compared between the two stocks.
Resonant Inc. is a late-stage development company. The Company creates filter designs for radio frequency (RF) front-ends for the mobile device industry. The RF front-end is the circuitry in a mobile device for analog signal processing and is located between the device’s antenna and its digital baseband. The Company uses a technology called Infinite Synthesized Networks (ISN) to configure and connect resonators, the building blocks of RF filters. The Company uses ISN to develop new classes of filter designs. The Company is also developing a series of single-band surface acoustic wave (SAW) filter designs for frequency bands. The Company is developing multiplexer filter designs for over two bands to address the carrier aggregation (CA) requirements of its customers. In addition, the Company is also developing reconfigurable filter designs to replace multiple filters for multiple bands. The Company is also involved in the development of a filter reconfigurable between three bands.
Micrel, Incorporated designs, develops, manufactures, and markets a range of high-performance analog, power and mixed-signal integrated circuits (ICs). The Company’s products address a range of markets, including industrial and automotive, wireline communications, enterprise and cloud infrastructure and mobility. It also manufactures custom analog and mixed-signal circuits and provides wafer foundry services for customers which produce electronic systems utilizing semiconductor manufacturing processes, as well as micro-electrical mechanical system (MEMS) technologies. Its offers a linear and power management product portfolio for the networking and communications infrastructure markets, including cloud and enterprise servers, network switches and routers, storage area networks, wireless base stations, and the Internet of Everything. In addition, it offers products that serve the solid state drive market and are seeing strength in the emergence of solid state drives.
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