Financial Analysis: ParkerVision (PRKR) vs. Sierra Wireless (SWIR)

ParkerVision (NASDAQ:PRKR) and Sierra Wireless (NASDAQ:SWIR) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Profitability

This table compares ParkerVision and Sierra Wireless’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ParkerVision N/A N/A -219.02%
Sierra Wireless -2.96% 1.73% 1.16%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for ParkerVision and Sierra Wireless, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ParkerVision 0 0 0 0 N/A
Sierra Wireless 0 6 3 0 2.33

Sierra Wireless has a consensus target price of $23.67, indicating a potential upside of 27.58%. Given Sierra Wireless’ higher possible upside, analysts plainly believe Sierra Wireless is more favorable than ParkerVision.

Risk & Volatility

ParkerVision has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, Sierra Wireless has a beta of 2.86, indicating that its stock price is 186% more volatile than the S&P 500.

Institutional & Insider Ownership

9.5% of ParkerVision shares are owned by institutional investors. Comparatively, 25.3% of Sierra Wireless shares are owned by institutional investors. 7.6% of ParkerVision shares are owned by insiders. Comparatively, 2.0% of Sierra Wireless shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares ParkerVision and Sierra Wireless’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ParkerVision $100,000.00 77.77 -$19.25 million ($1.05) -0.29
Sierra Wireless $692.08 million 0.97 $4.13 million $0.58 31.98

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

Summary

Sierra Wireless beats ParkerVision on 10 of the 13 factors compared between the two stocks.

About ParkerVision

ParkerVision, Inc. designs, develops, and markets radio frequency (RF) technologies for use in wireless communication products in the United States. Its technologies apply to transmit and receive functions of transmitters, receivers, and transceivers, as well as other related RF communications functions. The company also offers WiFi products, including a two-unit system designed for coverage areas of up to 2,000 square feet and a three-unit system designed for coverage areas of up to 4,000 square feet; and integrated circuit products, such as PV5870 IC, a modulator/demodulator component. It sells home and small business networking products under the Milo brand. The company sells its Milo WiFi products through online sales channels and its own online store, as well as directly to Internet service providers. ParkerVision, Inc. was founded in 1989 and is headquartered in Jacksonville, Florida.

About Sierra Wireless

Sierra Wireless, Inc., together with its subsidiaries, engages in building the Internet of Things (IoT) with intelligent wireless solutions in North America, Europe, and the Asia Pacific. It operates in three segments: Original Equipment Manufacturer (OEM) Solutions, Enterprise Solutions, and Cloud and Connectivity Services. The OEM Solutions segment offers embedded cellular modules, short range wireless modules, software, and tools to integrate wireless connectivity into various products and solutions for OEM customers, including the embedded wireless modules product portfolio; and Legato, an open source, Linux-based application framework. This segment provides its products and solutions to a range of industries, including automotive, transportation, enterprise networking, energy, sales and payment, mobile computing, security, industrial monitoring, field services, residential, healthcare, and other industries. It also offers professional services to OEM customers during their product development and launch process. The Enterprise Solutions segment provides a range of second, third, and fourth generation LTE intelligent cellular routers and gateways, as well as security and device management solutions, and professional services to public safety, transportation field service, energy, industrial, retail, and financial enterprises. The Cloud and Connectivity Services segment provides secure and scalable cloud based platform for deploying and managing IoT subscriptions, devices, data, and applications; connectivity services, which include smart SIM and core network platforms; and managed broadband cellular services. Sierra Wireless, Inc. sells its products directly, as well as through various indirect channels, such as OEMs, distributors, value added resellers, and hardware vendors, as well as SIM vendors and mobile network operators. The company was founded in 1993 and is headquartered in Richmond, Canada.

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