Financial Analysis: Magnite (NASDAQ:MGNI) and Inseego (NASDAQ:INSG)

Inseego (NASDAQ:INSG) and Magnite (NASDAQ:MGNI) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inseego	-1.26%	-13.38%	-1.57%
Magnite	21.96%	8.40%	2.40%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Inseego and Magnite, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inseego	1	2	1	1	2.40
Magnite	0	2	8	0	2.80

Inseego currently has a consensus price target of $17.75, indicating a potential upside of 10.39%. Magnite has a consensus price target of $24.33, indicating a potential upside of 72.21%. Given Magnite’s stronger consensus rating and higher possible upside, analysts plainly believe Magnite is more favorable than Inseego.

Earnings & Valuation

This table compares Inseego and Magnite”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inseego	$166.19 million	1.57	$840,000.00	$0.62	25.94
Magnite	$713.95 million	2.83	$144.61 million	$1.04	13.59

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

Institutional and Insider Ownership

34.2% of Inseego shares are owned by institutional investors. Comparatively, 73.4% of Magnite shares are owned by institutional investors. 20.9% of Inseego shares are owned by insiders. Comparatively, 4.3% of Magnite shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Inseego has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, Magnite has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500.

Summary

Magnite beats Inseego on 12 of the 15 factors compared between the two stocks.

About Inseego

Inseego Corp. engages in the design and development of cloud-managed wireless wide area network (WAN) and intelligent edge solutions for businesses, consumers, and governments worldwide. The company provides 5G and 4G mobile broadband solutions, such as mobile hotspots under the MiFi brand; and 4G VoLTE products and 4G USB modems. It also offers fixed wireless access solutions, including indoor, outdoor, and industrial routers and gateways. In addition, the company provides Inseego Connect solution for device management; and 5G SD EDGE solution for secure networking enabling corporate managed mobile remote workforce. Further, it offers SaaS solutions, including telematic and asset tracking solution that provides live maps and data to improve driver safety and performance; Inseego Subscribe, a wireless subscriber management solution for carrier’s management of their government and complex enterprise customer subscriptions. The company was founded in 1996 and is based in San Diego, California.

About Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.