Boingo Wireless (NASDAQ: WIFI) and iPass (NASDAQ:IPAS) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.
Institutional and Insider Ownership
81.4% of Boingo Wireless shares are owned by institutional investors. Comparatively, 24.1% of iPass shares are owned by institutional investors. 7.7% of Boingo Wireless shares are owned by insiders. Comparatively, 5.7% of iPass shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Boingo Wireless and iPass’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Boingo Wireless | -13.85% | -25.82% | -6.63% |
| iPass | -20.49% | -78.31% | -41.09% |
Risk and Volatility
Boingo Wireless has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, iPass has a beta of -0.38, meaning that its share price is 138% less volatile than the S&P 500.
Valuation & Earnings
This table compares Boingo Wireless and iPass’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Boingo Wireless | $179.14 million | 4.31 | $38.33 million | ($0.64) | -30.11 |
| iPass | $59.75 million | 0.67 | -$10.62 million | ($0.19) | -3.16 |
Boingo Wireless has higher revenue and earnings than iPass. Boingo Wireless is trading at a lower price-to-earnings ratio than iPass, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for Boingo Wireless and iPass, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Boingo Wireless | 1 | 0 | 7 | 0 | 2.75 |
| iPass | 0 | 1 | 4 | 0 | 2.80 |
Boingo Wireless presently has a consensus target price of $18.04, suggesting a potential downside of 6.36%. iPass has a consensus target price of $2.61, suggesting a potential upside of 335.42%. Given iPass’ stronger consensus rating and higher probable upside, analysts clearly believe iPass is more favorable than Boingo Wireless.
Summary
Boingo Wireless beats iPass on 10 of the 13 factors compared between the two stocks.
Boingo Wireless Company Profile
Boingo Wireless, Inc. is a provider of commercial mobile wireless fidelity (Wi-Fi) Internet solutions and indoor Distributed Antenna System (DAS) services. The Company operates as a service provider of wireless connectivity solutions across its managed and operated network and aggregated network for mobile devices such as laptops, smartphones, tablets and other wireless-enabled consumer devices. It acquires long-term wireless rights at venues, such as airports, transportation hubs, stadiums, arenas, universities, convention centers, and office campuses; builds wireless networks, such as DAS, Wi-Fi and small cells at those venues, and monetizes the wireless networks through a range of products and services. As of December 31, 2016, the Company operated 36 DAS networks containing approximately 19,200 DAS nodes. Its Wi-Fi network includes locations that the Company manages and operates, as well as networks managed and operated by third-parties with whom it contracts for access.
iPass Company Profile
iPass Inc. (iPass), is a provider of global mobile connectivity, offering wireless fidelity (Wi-Fi) on mobile devices. The Company, through its Mobile Connectivity Services segment, offers a cloud-based solution allowing its customers and their users’ access to its global Wi-Fi network to stay connected to the people and information. The Company has categorized its services into two approaches: Enterprise and Strategic Partnerships. Enterprise, formerly Open Mobile Enterprise (OME), focuses on providing mobile connectivity solutions to enterprises, from large to small. Strategic Partnerships, formerly Open Mobile Exchange (OMX), is executed through business development deals intended to open channel distributions for its product to reach the consumer market. Strategic Partnerships include global Original Equipment Manufacturers (OEMs), programs, including credit card companies, software product and service providers, and communication companies.
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