Financial Contrast: InterDigital (IDCC) and Inseego (INSG)
InterDigital (NASDAQ: IDCC) and Inseego (NASDAQ:INSG) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.
InterDigital pays an annual dividend of $1.40 per share and has a dividend yield of 1.9%. Inseego does not pay a dividend. InterDigital pays out 19.3% of its earnings in the form of a dividend.
Risk and Volatility
InterDigital has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Inseego has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.
Institutional and Insider Ownership
72.9% of InterDigital shares are held by institutional investors. Comparatively, 12.1% of Inseego shares are held by institutional investors. 1.9% of InterDigital shares are held by insiders. Comparatively, 4.1% of Inseego shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares InterDigital and Inseego’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares InterDigital and Inseego’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|InterDigital||$665.85 million||3.94||$309.00 million||$7.24||10.45|
|Inseego||$243.55 million||0.42||-$60.57 million||($1.22)||-1.43|
InterDigital has higher revenue and earnings than Inseego. Inseego is trading at a lower price-to-earnings ratio than InterDigital, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for InterDigital and Inseego, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
InterDigital presently has a consensus target price of $94.00, suggesting a potential upside of 24.26%. Inseego has a consensus target price of $1.88, suggesting a potential upside of 7.76%. Given InterDigital’s higher probable upside, research analysts clearly believe InterDigital is more favorable than Inseego.
InterDigital beats Inseego on 12 of the 14 factors compared between the two stocks.
InterDigital, Inc. designs and develops technologies for wireless communications. The Company is focused on three technology areas: cellular wireless technology, Internet of things (IoT) technology, and, through its Hillcrest Laboratories, Inc. (Hillcrest Labs) subsidiary, sensor and sensor fusion technology. It offers a range of technologies that are used in digital cellular and wireless products and networks, including second generation (2G), third generation (3G), fourth generation (4G) and IEEE 802-related products and networks. Products incorporating its inventions include mobile devices, such as cellular phones, tablets, notebook computers and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; components, dongles and modules for wireless devices, and IoT devices and software platforms. The Company is developing a range of technologies in the areas of video compression and delivery, security, analytics, and other areas.
Novatel Wireless, Inc. is a provider of intelligent wireless solutions for the mobile communications market. The Company’s range of products includes intelligent mobile hotspots, universal serial bus (USB) modems, embedded modules, integrated asset-management and mobile tracking machine-to-machine (M2M) devices, communications and applications software and cloud services. It operates in the wireless communications industry in two product categories: M2M Products and Solutions, and Mobile Computing Solutions. M2M Products and Solutions includes its M2M embedded modules, integrated M2M communications devices, Ctrack fleet management platform and its service delivery platforms, Crossroads, DMS, the N4A DM and N4A CMS that provide device management and service enablement. Mobile Computing Solutions includes its MiFi brand of intelligent mobile hotspot devices, USB modems and embedded modules that enable Internet access and data transmission and services via cellular wireless networks.
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