Franklin Wireless (FKWL) and Fabrinet (FN) Head-To-Head Comparison

Franklin Wireless (OTCMKTS:FKWL) and Fabrinet (NYSE:FN) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Earnings & Valuation

This table compares Franklin Wireless and Fabrinet’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Franklin Wireless $30.07 million 0.72 -$2.09 million N/A N/A
Fabrinet $1.37 billion 1.25 $84.16 million $2.98 15.62

Fabrinet has higher revenue and earnings than Franklin Wireless.

Profitability

This table compares Franklin Wireless and Fabrinet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franklin Wireless -6.96% -11.69% -8.50%
Fabrinet 6.14% 12.68% 8.72%

Insider & Institutional Ownership

9.8% of Franklin Wireless shares are held by institutional investors. Comparatively, 100.0% of Fabrinet shares are held by institutional investors. 35.0% of Franklin Wireless shares are held by company insiders. Comparatively, 1.9% of Fabrinet shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Franklin Wireless and Fabrinet, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franklin Wireless 0 0 0 0 N/A
Fabrinet 0 3 3 0 2.50

Fabrinet has a consensus target price of $48.33, suggesting a potential upside of 3.83%. Given Fabrinet’s higher probable upside, analysts clearly believe Fabrinet is more favorable than Franklin Wireless.

Volatility & Risk

Franklin Wireless has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500. Comparatively, Fabrinet has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Summary

Fabrinet beats Franklin Wireless on 10 of the 11 factors compared between the two stocks.

About Franklin Wireless

Franklin Wireless Corp. provides intelligent wireless solutions. Its products include mobile hotspots, routers, and modems, as well as hardware and software products that support machine-to-machine (M2M) applications and the Internet of Things (IoT). The company's M2M and IoT solutions include embedded modules, and modems and gateways built to deliver connectivity supporting various spectrums of applications. Its products are used to solve wireless connectivity challenges in various vertical markets, including video surveillance, digital signage, home security, oil and gas exploration, kiosks, fleet management, smart grid, vehicle diagnostics, telematics, and others. The company directly markets its products to wireless operators, as well as indirectly through strategic partners and distributors located primarily in the United States, South America, the Caribbean, Europe, the Middle East, Africa, and Asia. Franklin Wireless Corp. was founded in 1981 and is headquartered in San Diego, California.

About Fabrinet

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, packaging, integration, final assembly, and test. Its products comprise switching products, such as reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths and speeds, and over various distances; tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as for Infiniband, Ethernet, fiber channel, and optical backplane connectivity. The company also offers solid state, diode-pumped, gas, and fiber lasers used in semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. In addition, it designs and fabricates application-specific crystals, lenses, prisms, mirrors, and laser components and substrates, as well as other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. The company serves original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, medical devices, and sensors. Fabrinet was incorporated in 1999 and is based in George Town, the Cayman Islands.

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