xG Technology (XGTI) and I.D. Systems (IDSY) Financial Review

xG Technology (NASDAQ: XGTI) and I.D. Systems (NASDAQ:IDSY) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Earnings & Valuation

This table compares xG Technology and I.D. Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
xG Technology $47.82 million 0.24 -$10.54 million N/A N/A
I.D. Systems $40.95 million 2.65 -$3.87 million N/A N/A

I.D. Systems has lower revenue, but higher earnings than xG Technology.

Insider & Institutional Ownership

3.4% of xG Technology shares are held by institutional investors. Comparatively, 42.6% of I.D. Systems shares are held by institutional investors. 9.1% of xG Technology shares are held by company insiders. Comparatively, 8.6% of I.D. Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

xG Technology has a beta of -0.51, meaning that its stock price is 151% less volatile than the S&P 500. Comparatively, I.D. Systems has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Profitability

This table compares xG Technology and I.D. Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
xG Technology -46.88% -61.31% -33.35%
I.D. Systems -6.42% -11.01% -5.50%

Analyst Ratings

This is a breakdown of recent ratings and target prices for xG Technology and I.D. Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
xG Technology 0 1 1 0 2.50
I.D. Systems 0 0 4 0 3.00

xG Technology presently has a consensus target price of $3.75, suggesting a potential upside of 428.17%. I.D. Systems has a consensus target price of $9.50, suggesting a potential upside of 54.22%. Given xG Technology’s higher probable upside, equities research analysts clearly believe xG Technology is more favorable than I.D. Systems.

Summary

I.D. Systems beats xG Technology on 9 of the 12 factors compared between the two stocks.

About xG Technology

xG Technology, Inc. designs, develops, and delivers advanced wireless communications solutions worldwide. It offers electronic news gathering, wireless camera, portable microwave, and fixed point to point systems for the broadcasting market; wireless camera systems and mobile radios for the sports and entertainment market; and wireless video solutions, including manned and unmanned aerial and ground systems, mobile and handheld receive systems, and transmitters for the government/surveillance market. The company also provides microwave radio components, and satellite communication and associated amplifier products. In addition, it offers xMax, a mobile voice over Internet protocol (VoIP) and broadband data system, which utilizes an end-to-end Internet protocol (IP) system architecture; xMax CN5100 mobile hotspot, a device that allows users of Wi-Fi enabled smartphones, tablets, notebooks, and other devices to access the Internet through the xMax cognitive radio network; xMax CN3100 vehicle modem, which acts as a transparent protocol bridge allowing users of WiFi-enabled devices to access the Internet through the xMax cognitive radio network; xMax CN3200 dual-band routing modem for use in fixed and mobile applications; CN1100 access point, an IP wireless access point that delivers wide area coverage and broadband throughput for fixed, nomadic, and mobile applications; and CN7000 mobile control center, which controls the delivery of voice and data services, and manages various elements in the regional network. Further, the company offers xMonitor, which monitors the status and health of various access points, mobile control center elements, and VoIP core elements; and xDrive, a drive mapping utility designed to gather, display, and log performance statistics from mobile hotspot, dual-band routing modem, and CN3100 vehicle modem. xG Technology, Inc. was founded in 2002 and is headquartered in Sarasota, Florida.

About I.D. Systems

I.D. Systems, Inc. develops, markets, and sells wireless machine-to-machine solutions primarily in North America. The company provides integrated wireless solutions that utilize radio frequency identification, Wi-Fi, satellite or cellular communications, sensor technologies, and software to control, monitor, track, and analyze industrial and rental vehicles, as well as transportation assets. It offers industrial truck asset management and connected vehicles products, including on-asset hardware with mounting and user-interface options that provide an autonomous means of asset control and monitoring; wireless asset managers that link the mobile assets being monitored with the customer's computer network or to a remotely hosted server; server software, which manages data communications between the system's database and wireless asset managers or on-asset hardware; and client software. It also offers transportation asset management products comprising on-asset hardware configurations to address various remote asset types; VeriWise Intelligence Portal, a hosted Website that provides Internet access to client asset information; and a direct data feed through XML or Web services. In addition, I.D. Systems, Inc. offers hardware and software solutions, as well as hosting, maintenance, and support and consulting services; and Software as a Service covering system monitoring, help desk technical support, escalation procedure development, routine diagnostic data analysis, and software updates services. The company markets and sells its wireless solutions directly to commercial and government sectors in automotive manufacturing, retail, shipping, freight transportation, heavy industry, wholesale distribution, aerospace and defense, homeland security, and vehicle rental markets, as well as through indirect sales channels, such as original equipment manufacturers and industrial equipment dealers. I.D. Systems, Inc. was founded in 1993 and is based in Woodcliff Lake, New Jersey.

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