Reviewing Aeroflex (ARX) and Supercom (SPCB)

Aeroflex (NYSE: ARX) and Supercom (NASDAQ:SPCB) are both rfid systems companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Aeroflex and Supercom, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aeroflex 0 0 2 0 3.00
Supercom 0 0 2 0 3.00

Aeroflex presently has a consensus target price of $22.50, suggesting a potential upside of Infinity. Supercom has a consensus target price of $5.25, suggesting a potential upside of 36.72%. Given Aeroflex’s higher possible upside, research analysts plainly believe Aeroflex is more favorable than Supercom.

Valuation & Earnings

This table compares Aeroflex and Supercom’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aeroflex N/A N/A N/A ($0.93) N/A
Supercom $20.33 million 2.82 -$13.99 million ($0.77) -4.99

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

Institutional & Insider Ownership

21.0% of Supercom shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Aeroflex and Supercom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aeroflex N/A N/A N/A
Supercom -38.60% -24.74% -16.86%

Summary

Aeroflex beats Supercom on 4 of the 7 factors compared between the two stocks.

About Aeroflex

Aeroflex Holding Corp. (Aeroflex Holding) is a provider of radio frequency (RF) and microwave integrated circuits, components and systems used in the design, development and maintenance of wireless communication systems. The Company’s solutions include microelectronic components and test and measurement equipment used by companies in the space, avionics and defense; commercial wireless communications, and medical and other markets. Its products include a range of RF, microwave and millimeter wave microelectronic components, integrated circuits (ICs), and analog and mixed-signal devices. It operates in two segments: Aeroflex Microelectronics Solutions (AMS) and Aeroflex Test Solutions (ATS). In February 2014, Aeroflex Holding Corp announced the acquisition of Shenick Network Systems. In September 2014, Cobham PLC completes Aeroflex acquisition.

About Supercom

SuperCom Ltd is a provider of traditional and digital identity solutions, providing safety, identification, tracking and security products to governments, and private and public organizations throughout the world. Through its e-government platforms and solutions for traditional and biometrics enrollment, personalization, issuance and border control services, the Company enables governments and national agencies to design and issue multi-identification documents and digital identity solutions to their citizens and visitors. Its Machine to Machine solutions identify, track and monitor people or objects in real time, enabling its customers to detect unauthorized movement of people, vehicles and other monitored objects. Its SFS products and solutions include SuperPay Suite, PureMoney Suite, SuperPOS, SafeMoney for Smartphones and PowaPOS. Its other offerings include RFID and Mobile PureRF suite, domestic violence victim protection system and PureProtect application, among others.

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