Inseego (INSG) & Iteris (ITI) Critical Analysis

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

Volatility and Risk

Inseego has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Iteris has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inseego 0 1 1 0 2.50
Iteris 0 0 4 0 3.00

Inseego presently has a consensus price target of $2.13, indicating a potential upside of 1.19%. Iteris has a consensus price target of $9.13, indicating a potential upside of 78.92%. Given Iteris’ stronger consensus rating and higher probable upside, analysts plainly believe Iteris is more favorable than Inseego.

Profitability

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

Net Margins Return on Equity Return on Assets
Inseego -20.85% N/A -24.11%
Iteris -4.32% -10.05% -6.41%

Insider & Institutional Ownership

7.8% of Inseego shares are held by institutional investors. Comparatively, 33.2% of Iteris shares are held by institutional investors. 4.1% of Inseego shares are held by company insiders. Comparatively, 4.3% of Iteris shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Inseego and Iteris’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inseego $219.30 million 0.56 -$45.73 million ($0.78) -2.69
Iteris $95.98 million 1.76 -$4.82 million ($0.08) -63.75

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

Summary

Iteris beats Inseego on 10 of the 13 factors compared between the two stocks.

Inseego Company Profile

Inseego Corp., together with its subsidiaries, provides software-as-a-service (SaaS) and solutions for Internet of Things (IoT) worldwide. It sells telematics solutions, including fleet management, asset tracking and monitoring, stolen vehicle recovery, and usage-based insurance platforms under the Ctrack brand; and connectivity solutions and device management services. The company sells SaaS, software, and service solutions across multiple IoT vertical markets, including fleet management and vehicle telematics, usage-based insurance, stolen vehicle recovery, asset tracking and monitoring, business connectivity, and device management. Its platforms provide a way to order, connect, and manage remote assets; and improve business operations. The company's SaaS delivery platforms include Ctrack platforms, which provide fleet, vehicle, asset, and other SaaS telematics; Crossroads platform, which provides IoT device management and service enablement; and Device Management Solutions, a hosted SaaS platform that helps organizations manage the selection, deployment, and spend of their wireless assets, saving money on personnel, and telecom expenses. Its integrated telematics and mobile tracking hardware is sold as an enabler for its Ctrack SaaS delivery platforms; and telematics and mobile tracking hardware devices collect and control critical vehicle data and driver behaviors, and deliver that information to the cloud. Its customers comprise wireless operators, distributors, original equipment manufacturers, and companies. The company was formerly known as Novatel Wireless Inc. and changed its name to Inseego Corp. in November 2016. Inseego Corp. was founded in 1996 and is headquartered in San Diego, California.

Iteris Company Profile

Iteris, Inc. provides intelligent information solutions to traffic management and global agribusiness markets worldwide. It operates in three segments: Roadway Sensors, Transportation Systems, and Agriculture and Weather Analytics. The Roadway Sensors segment provides vehicle detection and information systems and products for traffic intersection control, incident detection, and roadway traffic data collection applications. Its products include Vantage detection system to detect vehicle presence at intersections, as well as vehicle count, speed, and other traffic data used in traffic management systems; Vantage Vector video/radar hybrid product, an vehicle detection sensor with capabilities, including stop bar detection, advanced-zone detection, and sensing; Vantage systems equipped with smartcycle capability to differentiate between bicycles and other vehicles with a single video detection camera; VersiCam, an integrated camera and processor video detection system; VantageLive!, a cloud-based subscription service; and SmartSpan, PedTrax ,Velocity, VantageLive, and P-series products. The Transportation Systems segment offers transportation engineering and consulting services with a focus on the planning, design, development, and implementation of software-based systems that integrate sensors, video surveillance systems, computers, and communications equipment to enable public agencies to monitor, control, and direct traffic flow; assist in the dispatch of emergency crews; and distribute real-time information about traffic conditions. It offers iPeMS, a specialized transportation performance measurement and traffic analytics solution. The Agriculture and Weather Analytics segment offers ClearPath Weather management tools that allow users to create solutions to meet roadway maintenance decision needs; and ClearAg, a precision agriculture solution. The company serves government agencies. Iteris, Inc. was founded in 1969 and is headquartered in Santa Ana, California.

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