EMCORE (EMKR) vs. Sierra Wireless (NASDAQ:SWIR) Head to Head Contrast

EMCORE (NASDAQ: EMKR) and Sierra Wireless (NASDAQ:SWIR) are both small-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Earnings and Valuation

This table compares EMCORE and Sierra Wireless’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EMCORE $122.89 million 1.49 $8.23 million $0.30 22.50
Sierra Wireless $615.61 million 1.16 $15.38 million $0.72 27.71

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

Risk and Volatility

EMCORE has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Sierra Wireless has a beta of 3.17, meaning that its stock price is 217% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for EMCORE and Sierra Wireless, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EMCORE 0 2 2 0 2.50
Sierra Wireless 0 9 3 0 2.25

EMCORE presently has a consensus price target of $9.13, indicating a potential upside of 35.19%. Sierra Wireless has a consensus price target of $26.30, indicating a potential upside of 31.83%. Given EMCORE’s stronger consensus rating and higher probable upside, equities analysts plainly believe EMCORE is more favorable than Sierra Wireless.

Insider and Institutional Ownership

77.6% of EMCORE shares are owned by institutional investors. Comparatively, 21.0% of Sierra Wireless shares are owned by institutional investors. 0.8% of EMCORE shares are owned by company insiders. Comparatively, 2.0% of Sierra Wireless shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares EMCORE and Sierra Wireless’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EMCORE 6.70% 9.30% 7.74%
Sierra Wireless 3.48% 9.32% 6.03%

Summary

Sierra Wireless beats EMCORE on 8 of the 14 factors compared between the two stocks.

About EMCORE

EMCORE Corporation is engaged in designing and manufacturing indium phosphide (InP) optical chips, components, subsystems and systems for the broadband and specialty fiber optics market. The Company focuses on linear fiber optic transmission technology. The Company operates through Fiber Optics segment. The Company provides optical components, and also end-to-end solutions for high-speed communications network infrastructures. The Company’s optical technologies are designed for cable television (CATV) and fiber-to-the-premise (FTTP) networks, telecommunications and data centers, satellite communications, aerospace and defense, wireless networks, and broadcast and professional audio/video systems. The Company’s fiber optics products enable information that is modulated on light signals to be transmitted, routed (switched) and received in communication systems and networks.

About Sierra Wireless

Sierra Wireless, Inc. is engaged in building the Internet of Things (IoT) with wireless solutions for organizations. The Company’s OEM Solution segment offers cellular embedded wireless modules for IoT connectivity, including an embedded application framework to support customer applications. The Company’s Enterprise Solution segment offers intelligent routers and gateways, including management tools and applications that enable cellular connectivity. The Company’s Cloud and Connectivity Services segment offers a cloud based platform for deploying and managing IoT applications, Smart SIM supported by mobile core networks, and managed wireless broadband services to enable customer IoT deployments. The Company offers a portfolio of second generation, third generation, and fourth generation cellular embedded wireless modules and gateways, integrated with its secure cloud and connectivity services. The Company offers its products to original equipment manufacturers (OEMs) and enterprises.

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