EMCORE Corporation (NASDAQ: EMKR) and Airgain (NASDAQ:AIRG) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Insider & Institutional Ownership

76.1% of EMCORE Corporation shares are held by institutional investors. Comparatively, 35.6% of Airgain shares are held by institutional investors. 0.8% of EMCORE Corporation shares are held by insiders. Comparatively, 23.4% of Airgain shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

EMCORE Corporation has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Airgain has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for EMCORE Corporation and Airgain, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EMCORE Corporation 0 1 3 0 2.75
Airgain 0 0 4 0 3.00

EMCORE Corporation presently has a consensus price target of $11.88, suggesting a potential upside of 37.68%. Airgain has a consensus price target of $16.83, suggesting a potential upside of 80.81%. Given Airgain’s stronger consensus rating and higher probable upside, analysts plainly believe Airgain is more favorable than EMCORE Corporation.

Profitability

This table compares EMCORE Corporation and Airgain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EMCORE Corporation 6.73% 9.25% 7.71%
Airgain 5.27% 9.22% 7.28%

Valuation and Earnings

This table compares EMCORE Corporation and Airgain’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EMCORE Corporation $119.32 million 1.94 $13.00 million $0.30 28.75
Airgain $49.33 million 1.80 $4.45 million $0.31 30.03

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

Summary

EMCORE Corporation beats Airgain on 8 of the 14 factors compared between the two stocks.

EMCORE Corporation Company Profile

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.

Airgain Company Profile

Airgain, Inc. is a provider of embedded antenna technologies used to enable wireless networking across a range of home, enterprise and industrial devices. The Company’s antennas are found in devices deployed in carrier, enterprise and residential wireless networks and systems, including set top boxes, access points, routers, gateways and digital televisions. It offers six product lines, including MaxBeam High Gain Embedded Antennas, Profile Embedded Antennas, Profile Contour Embedded Antennas, Ultra Embedded Antennas, OmniMax High Performance External Antennas and MaxBeam Carrier Class Antennas. The Company, through its design, integration and testing of embedded antenna technology, provides its technology to the residential wireless local area network, wireless fidelity and antenna market, and also supplies to carriers, original equipment manufacturers, original design manufacturers and system designers. The Company supplies its products in the United States, Europe, Canada and Asia.

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