Financial Analysis: CalAmp Corp. (CAMP) vs. pdvWireless (PDVW)
CalAmp Corp. (NASDAQ: CAMP) and pdvWireless (NASDAQ:PDVW) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
This table compares CalAmp Corp. and pdvWireless’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
72.7% of CalAmp Corp. shares are owned by institutional investors. Comparatively, 93.5% of pdvWireless shares are owned by institutional investors. 5.3% of CalAmp Corp. shares are owned by company insiders. Comparatively, 10.9% of pdvWireless shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for CalAmp Corp. and pdvWireless, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CalAmp Corp. currently has a consensus price target of $21.00, suggesting a potential upside of 14.01%. pdvWireless has a consensus price target of $51.00, suggesting a potential upside of 77.08%. Given pdvWireless’ stronger consensus rating and higher possible upside, analysts plainly believe pdvWireless is more favorable than CalAmp Corp..
Earnings & Valuation
This table compares CalAmp Corp. and pdvWireless’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CalAmp Corp.||$348.04 million||1.87||$38.59 million||($0.21)||-87.71|
|pdvWireless||$5.21 million||79.69||-$27.65 million||($2.57)||-11.21|
CalAmp Corp. has higher revenue and earnings than pdvWireless. CalAmp Corp. is trading at a lower price-to-earnings ratio than pdvWireless, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CalAmp Corp. has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, pdvWireless has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.
CalAmp Corp. beats pdvWireless on 8 of the 13 factors compared between the two stocks.
About CalAmp Corp.
CalAmp Corp. (CalAmp) is a provider of wireless communications solutions for a range of applications to customers globally. The Company operates through two business segments: Wireless DataCom and Satellite. The Company’s Wireless DataCom segment offers solutions for mobile resource management (MRM) applications, the machine-to-machine (M2M) communications space and other markets that require connectivity anytime and anywhere. The Company’s MRM and M2M solutions collect, monitor and report data and intelligence from remote and mobile assets. The Company delivers products, software services and solutions for energy, government, transportation and automotive vertical markets. The Company’s Satellite segment develops, manufactures and sells direct-broadcast satellite (DBS) outdoor customer premise equipment and whole home video networking devices enabling the delivery of digital and high definition satellite television services. Its satellite products are sold primarily to EchoStar.
pdvWireless, Inc., formerly Pacific DataVision, Inc., is a wireless communications carrier and a provider of mobile workforce communication and location-based solutions. The Company’s solutions focus on enhancing the productivity of its customers’ field-based workers, and the efficiency of their dispatch and call center operations. The Company is deploying and operating the two-way radio networks that offer push-to-talk (PTT) communications services to primarily dispatch-centric, small and medium-sized businesses. The Company has launched its PTT networks in markets throughout the United States. The Company offers its DispatchPlus service, which combines pdvConnect, its suite of mobile communication and workforce management applications with digital network architecture and mobile devices. Developed for dispatch-centric businesses, pdvConnect enables businesses to locate and communicate with their field workers.
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