Financial Analysis: Franklin Wireless (FKWL) & NetGear (NTGR)
Franklin Wireless (OTCMKTS:FKWL) and NetGear (NASDAQ:NTGR) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
Valuation and Earnings
This table compares Franklin Wireless and NetGear’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Franklin Wireless||$30.07 million||0.79||-$2.09 million||N/A||N/A|
|NetGear||$1.41 billion||1.19||$19.43 million||$2.32||22.81|
Insider and Institutional Ownership
9.8% of Franklin Wireless shares are held by institutional investors. Comparatively, 99.8% of NetGear shares are held by institutional investors. 36.9% of Franklin Wireless shares are held by insiders. Comparatively, 5.1% of NetGear shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Franklin Wireless and NetGear’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Franklin Wireless has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500. Comparatively, NetGear has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500.
This is a breakdown of recent ratings for Franklin Wireless and NetGear, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NetGear has a consensus price target of $71.00, indicating a potential upside of 34.16%. Given NetGear’s higher possible upside, analysts plainly believe NetGear is more favorable than Franklin Wireless.
NetGear beats Franklin Wireless on 10 of the 11 factors compared between the two stocks.
Franklin Wireless Company Profile
Franklin Wireless Corp. provides intelligent wireless solutions. Its products include mobile hotspots, routers, and modems, as well as hardware and software products that support machine-to-machine (M2M) applications and the Internet of Things (IoT). The company's M2M and IoT solutions include embedded modules, and modems and gateways built to deliver connectivity supporting various spectrums of applications. Its products are used to solve wireless connectivity challenges in various vertical markets, including video surveillance, digital signage, home security, oil and gas exploration, kiosks, fleet management, smart grid, vehicle diagnostics, telematics, and others. The company directly markets its products to wireless operators, as well as indirectly through strategic partners and distributors located primarily in the United States, South America, the Caribbean, Europe, the Middle East, Africa, and Asia. Franklin Wireless Corp. was founded in 1981 and is headquartered in San Diego, California.
NetGear Company Profile
NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The company operates in three segments: Arlo, Connected Home, and Small and Medium Business. It offers smart home/connected home/broadband access products, such as remote video security systems, broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, and WiFi network adapters. The company also provides Ethernet switches, wireless controllers and access points, unified storage products, and Internet security appliances for small and medium-sized businesses. It markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers in the Americas, Europe, the Middle-East, Africa, and the Asia Pacific. NETGEAR, Inc. was founded in 1996 and is headquartered in San Jose, California.
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