Reviewing CalAmp Corp. (CAMP) and InterDigital (IDCC)
InterDigital (NASDAQ: IDCC) and CalAmp Corp. (NASDAQ:CAMP) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitabiliy, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
This is a summary of current ratings and target prices for InterDigital and CalAmp Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
InterDigital presently has a consensus target price of $91.33, suggesting a potential upside of 12.69%. CalAmp Corp. has a consensus target price of $19.67, suggesting a potential upside of 0.08%. Given InterDigital’s higher probable upside, equities research analysts clearly believe InterDigital is more favorable than CalAmp Corp..
Valuation and Earnings
This table compares InterDigital and CalAmp Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|InterDigital||$652.62 million||4.31||$476.32 million||$8.91||9.10|
|CalAmp Corp.||$351.10 million||1.96||$35.70 million||($0.20)||-98.25|
InterDigital has higher revenue and earnings than CalAmp Corp.. CalAmp Corp. is trading at a lower price-to-earnings ratio than InterDigital, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
69.6% of InterDigital shares are owned by institutional investors. Comparatively, 74.2% of CalAmp Corp. shares are owned by institutional investors. 1.5% of InterDigital shares are owned by insiders. Comparatively, 5.0% of CalAmp Corp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
InterDigital has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, CalAmp Corp. has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.
InterDigital pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. CalAmp Corp. does not pay a dividend. InterDigital pays out 13.5% of its earnings in the form of a dividend.
This table compares InterDigital and CalAmp Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
InterDigital beats CalAmp Corp. on 9 of the 16 factors compared between the two stocks.
InterDigital Company Profile
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.
CalAmp Corp. Company Profile
CalAmp Corp. (CalAmp) is a provider of wireless communications solutions for a range of applications to customers globally. The Company operates through two business segments: Wireless DataCom and Satellite. The Company’s Wireless DataCom segment offers solutions for mobile resource management (MRM) applications, the machine-to-machine (M2M) communications space and other markets that require connectivity anytime and anywhere. The Company’s MRM and M2M solutions collect, monitor and report data and intelligence from remote and mobile assets. The Company delivers products, software services and solutions for energy, government, transportation and automotive vertical markets. The Company’s Satellite segment develops, manufactures and sells direct-broadcast satellite (DBS) outdoor customer premise equipment and whole home video networking devices enabling the delivery of digital and high definition satellite television services. Its satellite products are sold primarily to EchoStar.
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