Inseego Corp. (INSG) versus SBA Communications Corporation (SBAC) Head to Head Review

Inseego Corp. (NASDAQ: INSG) and SBA Communications Corporation (NASDAQ:SBAC) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Inseego Corp. and SBA Communications Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inseego Corp. 0 1 1 0 2.50
SBA Communications Corporation 0 3 12 0 2.80

Inseego Corp. presently has a consensus target price of $1.75, indicating a potential upside of 47.06%. SBA Communications Corporation has a consensus target price of $142.23, indicating a potential downside of 6.49%. Given Inseego Corp.’s higher probable upside, equities analysts plainly believe Inseego Corp. is more favorable than SBA Communications Corporation.

Profitability

This table compares Inseego Corp. and SBA Communications Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inseego Corp. -32.34% -204.22% -16.74%
SBA Communications Corporation 2.19% -2.64% 0.67%

Valuation & Earnings

This table compares Inseego Corp. and SBA Communications Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Inseego Corp. $229.10 million 0.29 -$6.86 million ($1.33) -0.89
SBA Communications Corporation $1.68 billion 10.90 $1.10 billion $0.31 490.66

SBA Communications Corporation has higher revenue and earnings than Inseego Corp.. Inseego Corp. is trading at a lower price-to-earnings ratio than SBA Communications Corporation, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Inseego Corp. has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, SBA Communications Corporation has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Institutional & Insider Ownership

12.2% of Inseego Corp. shares are held by institutional investors. Comparatively, 99.2% of SBA Communications Corporation shares are held by institutional investors. 4.1% of Inseego Corp. shares are held by company insiders. Comparatively, 2.1% of SBA Communications Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

SBA Communications Corporation beats Inseego Corp. on 11 of the 13 factors compared between the two stocks.

Inseego Corp. Company Profile

Novatel Wireless, Inc. is a provider of intelligent wireless solutions for the mobile communications market. The Company’s range of products includes intelligent mobile hotspots, universal serial bus (USB) modems, embedded modules, integrated asset-management and mobile tracking machine-to-machine (M2M) devices, communications and applications software and cloud services. It operates in the wireless communications industry in two product categories: M2M Products and Solutions, and Mobile Computing Solutions. M2M Products and Solutions includes its M2M embedded modules, integrated M2M communications devices, Ctrack fleet management platform and its service delivery platforms, Crossroads, DMS, the N4A DM and N4A CMS that provide device management and service enablement. Mobile Computing Solutions includes its MiFi brand of intelligent mobile hotspot devices, USB modems and embedded modules that enable Internet access and data transmission and services via cellular wireless networks.

SBA Communications Corporation Company Profile

SBA Communications Corporation is an independent owner and operator of wireless communications tower structures, rooftops and other structures that support antennas used for wireless communications. The Company’s operating segments include site leasing and site development. The site leasing business includes segments, domestic site leasing and international site leasing. The Company’s primary business line is its site leasing business. In its site leasing business, the Company leases antenna space to wireless service providers on towers that it owns or operates, and manages rooftop and tower sites for property owners under various contractual arrangements. The Company owns approximately 25,460 towers. It also manages or leases approximately 5,500 actual or potential towers. The Company’s other business line is its site development business, through which it assists wireless service providers in developing and maintaining their own wireless service networks.

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