Maxwell Technologies (NASDAQ: MXWL) and DragonWave, Inc.(USA) (NASDAQ:DRWI) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Profitability

This table compares Maxwell Technologies and DragonWave, Inc.(USA)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Maxwell Technologies -34.18% -30.83% -21.80%
DragonWave, Inc.(USA) -48.04% N/A -42.89%

Risk and Volatility

Maxwell Technologies has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, DragonWave, Inc.(USA) has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Earnings & Valuation

This table compares Maxwell Technologies and DragonWave, Inc.(USA)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Maxwell Technologies $115.70 million 1.74 -$19.60 million ($1.19) -4.76
DragonWave, Inc.(USA) N/A N/A N/A ($2.80) -0.09

DragonWave, Inc.(USA) has higher revenue, but lower earnings than Maxwell Technologies. Maxwell Technologies is trading at a lower price-to-earnings ratio than DragonWave, Inc.(USA), indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

46.1% of Maxwell Technologies shares are held by institutional investors. Comparatively, 14.7% of DragonWave, Inc.(USA) shares are held by institutional investors. 3.5% of Maxwell Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Maxwell Technologies and DragonWave, Inc.(USA), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Maxwell Technologies 0 4 1 0 2.20
DragonWave, Inc.(USA) 2 0 2 0 2.00

Maxwell Technologies presently has a consensus target price of $6.50, suggesting a potential upside of 14.84%. DragonWave, Inc.(USA) has a consensus target price of $2.23, suggesting a potential upside of 792.00%. Given DragonWave, Inc.(USA)’s higher possible upside, analysts clearly believe DragonWave, Inc.(USA) is more favorable than Maxwell Technologies.

Summary

Maxwell Technologies beats DragonWave, Inc.(USA) on 7 of the 11 factors compared between the two stocks.

About Maxwell Technologies

Maxwell Technologies, Inc. develops, manufactures and markets energy storage and power delivery products for transportation, industrial, information technology and other applications and microelectronic products for space and satellite applications. The Company offers three product lines: Ultracapacitors, High-Voltage Capacitors and Radiation-Hardened Microelectronic Products. The Company’s ultracapacitor cells and multi-cell packs, and modules provide energy storage and power delivery solutions for applications in multiple industries. The Company offers ultracapacitor cells with capacitances ranging from 1 to 3,400 farads. It designs and manufactures CONDIS high-voltage capacitors. These products include grading and coupling capacitors and electric voltage transformers. The Company’s radiation-hardened microelectronic products for satellites and spacecraft include single board computers and components, such as high-density memory and data conversion modules.

About DragonWave, Inc.(USA)

DragonWave Inc (DragonWave) is a provider of packet microwave solutions for Internet protocol (IP) networks. The Company operates through broadband wireless backhaul equipment segment. The principal application of DragonWave’s products is mobile network backhaul. Additional applications include leased line replacement, last mile fiber extension and enterprise networks. The Company’s product lines include Harmony, Horizon, Avenue and NetViewer. The Harmony product line is a multi-service wireless platform enabling time division multiplexing (TDM) and packet-based services across wireless or wireline infrastructure. The Company’s Horizon product family is an Ethernet microwave portfolio and consists of Horizon Compact+ and Horizon Quantum. Its NetViewer is a multi-service, multi-product network management platform. The NetViewer enables provisioning, management, monitoring and configuration across the line of products in a single graphical user interface (GUI)-based system.

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