Reviewing Novume Solutions (NVMM) & xG Technology (XGTI)

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

Insider and Institutional Ownership

0.5% of Novume Solutions shares are owned by institutional investors. Comparatively, 2.5% of xG Technology shares are owned by institutional investors. 66.5% of Novume Solutions shares are owned by company insiders. Comparatively, 9.1% of xG Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Novume Solutions -18.26% -210.88% -38.39%
xG Technology -64.36% -105.92% -51.52%

Analyst Ratings

This is a breakdown of recent recommendations for Novume Solutions and xG Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Novume Solutions 0 0 1 0 3.00
xG Technology 0 1 0 0 2.00

Novume Solutions currently has a consensus target price of $4.75, indicating a potential upside of 200.63%. xG Technology has a consensus target price of $4.00, indicating a potential upside of 733.33%. Given xG Technology’s higher probable upside, analysts clearly believe xG Technology is more favorable than Novume Solutions.

Earnings and Valuation

This table compares Novume Solutions and xG Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Novume Solutions $22.13 million 1.04 -$5.04 million N/A N/A
xG Technology $47.82 million 0.17 -$10.54 million N/A N/A

Novume Solutions has higher earnings, but lower revenue than xG Technology.

Summary

Novume Solutions beats xG Technology on 7 of the 11 factors compared between the two stocks.

About Novume Solutions

Novume Solutions, Inc., through its subsidiaries, provides consulting and technical support services to government contracting market in the United States. It offers market intelligence and opportunity identification, capture and strategic advisory, proposal strategy and development, teaming support, and managed human capital services to assist government contractors. The company also provides risk mitigation and crisis management services comprising predictive intelligence, business continuity, risk assessment, crisis management and communications, emergency and cyber incident response, behavioral risk and threat assessment, and workplace violence prevention. In addition, it offers BERTHA, a behavioral risk and threat assessment program, to identify early warning signs that may be exhibited by an individual before they are on a path to violence. Further, the company provides specialty staffing services, which include specialized contract personnel, temp-to-hire professionals, direct hires, and temporary or seasonal hires to the Department of Defense and various group of companies in the aerospace and aviation industry. Additionally, it offers compensation assessments, program maturity effectiveness, event impact management reviews, and IT resiliency and critical supply analyses services; and automated traffic safety enforcement solutions, including speed, red light, and move-over and distracted driving camera systems, as well as citation management software and secure electronic evidence storage systems. Novume Solutions, Inc. was founded in 2017 and is headquartered in Chantilly, Virginia.

About xG Technology

xG Technology, Inc. designs, develops, and delivers advanced wireless communications solutions in North America, Europe, South America, Asia, and rest of world. The company 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. It provides HCAM, a 4K Ultra HD-capable on-camera wireless video transmitter; HDX-1100, an aircraft downlink transmitter; Newsnet, a ENG operations that brings studio workflows directly to the field; ViewBack, a lightweight, low power and latency, and dual channel receiver-decoder that enables production, editing, and collaboration between camera operators and studio teams; and SatWare, an embedded computing and routing system designed for broadcast equipment in the field. In addition, the company offers mobile voice over Internet protocol and broadband data system, which utilizes an end-to-end Internet protocol system architecture; xMax now transportable broadband wireless system; CN5100 mobile hotspots; CN3100 vehicle modems designed to be installed inside or outside vehicles; CN3200 dual-band routing modem; CN1100 wireless access point; and CN7000 mobile control center. It markets its products through sales channels, including direct-to-end customer sales, network group sales, reseller/integrators, and original equipment manufacturers under the Integrated Microwave Technologies LLC, Vislink Communication Systems, and xMax brand names. xG Technology, Inc. was founded in 2002 and is headquartered in Sarasota, Florida.

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