Inseego (INSG) vs. xG Technology (XGTI) Financial Survey

Inseego (NASDAQ: INSG) and xG Technology (NASDAQ:XGTI) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Profitability

This table compares Inseego and xG Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inseego -30.71% N/A -24.17%
xG Technology -20.76% -26.16% -15.69%

Analyst Recommendations

This is a summary of current ratings for Inseego and xG Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inseego 0 1 1 0 2.50
xG Technology 0 0 2 0 3.00

Inseego presently has a consensus target price of $1.88, suggesting a potential downside of 4.82%. xG Technology has a consensus target price of $3.75, suggesting a potential upside of 160.42%. Given xG Technology’s stronger consensus rating and higher possible upside, analysts plainly believe xG Technology is more favorable than Inseego.

Institutional & Insider Ownership

11.9% of Inseego shares are held by institutional investors. Comparatively, 2.9% of xG Technology shares are held by institutional investors. 4.1% of Inseego shares are held by insiders. Comparatively, 2.8% of xG Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Inseego and xG Technology’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inseego $243.55 million 0.47 -$60.57 million ($1.22) -1.61
xG Technology $6.57 million 3.22 -$20.90 million N/A N/A

xG Technology has lower revenue, but higher earnings than Inseego.

Risk and Volatility

Inseego has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, xG Technology has a beta of -0.69, meaning that its stock price is 169% less volatile than the S&P 500.

Summary

xG Technology beats Inseego on 7 of the 12 factors compared between the two stocks.

About Inseego

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.

About xG Technology

xG Technology, Inc. develops a portfolio of intellectual property, which is embedded in its software algorithms that offer cognitive interference mitigation and spectrum access solutions for a range of applications using commercial off the shelf devices. The Company is a provider of wireless video solutions to broadcast, law enforcement and defense markets, and private mobile broadband networks for use in a range of environments. The Company markets its technology solutions across three business units: Integrated Microwave Technologies (IMT), Vislink Communication Systems and xMax. The Company offers a range of frequency-agnostic cognitive radio solutions. It focuses on various industries across the world, such as telecommunications, cable, defense and public safety, municipal governments, critical infrastructure and markets ranging from rural to urban areas and expeditionary deployments.

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