Critical Review: Inseego Corp. (INSG) & Crown Castle International Corporation (CCI)
Inseego Corp. (NASDAQ: INSG) and Crown Castle International Corporation (NYSE:CCI) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.
Risk and Volatility
Inseego Corp. has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Crown Castle International Corporation has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.
Crown Castle International Corporation pays an annual dividend of $3.80 per share and has a dividend yield of 3.6%. Inseego Corp. does not pay a dividend. Crown Castle International Corporation pays out 304.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Inseego Corp. has raised its dividend for 2 consecutive years.
This table compares Inseego Corp. and Crown Castle International Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Crown Castle International Corporation||11.14%||6.21%||1.95%|
This is a summary of recent ratings and target prices for Inseego Corp. and Crown Castle International Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Crown Castle International Corporation||0||4||8||0||2.67|
Inseego Corp. currently has a consensus price target of $1.75, indicating a potential upside of 62.04%. Crown Castle International Corporation has a consensus price target of $104.05, indicating a potential downside of 0.07%. Given Inseego Corp.’s higher possible upside, equities research analysts clearly believe Inseego Corp. is more favorable than Crown Castle International Corporation.
Valuation & Earnings
This table compares Inseego Corp. and Crown Castle International Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Inseego Corp.||$232.00 million||0.26||-$8.41 million||($1.33)||-0.81|
|Crown Castle International Corporation||$4.08 billion||10.37||$2.17 billion||$1.25||83.30|
Crown Castle International Corporation has higher revenue and earnings than Inseego Corp.. Inseego Corp. is trading at a lower price-to-earnings ratio than Crown Castle International Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
12.2% of Inseego Corp. shares are owned by institutional investors. Comparatively, 84.2% of Crown Castle International Corporation shares are owned by institutional investors. 4.1% of Inseego Corp. shares are owned by insiders. Comparatively, 0.4% of Crown Castle International Corporation 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.
Crown Castle International Corporation beats Inseego Corp. on 11 of the 16 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.
Crown Castle International Corporation Company Profile
Castle International Corp. (CCIC) is a real estate investment trust (REIT) company. The Company owns, operates and leases shared wireless infrastructure, including towers and other structures, such as rooftops (towers), and to a lesser extent, distributed antenna systems (DAS), a type of small cell network (small cells), and interests in land under third party towers in various forms (third party land interests). Its core business is renting space or physical capacity (collectively, space) on its towers, DAS and, to a lesser extent, third party land interests (collectively, site rental business) through long-term contracts in various forms, including license, sublease and lease agreements (collectively, contracts). The Company owned, leased or managed approximately 39,600 towers in the United States, including Puerto Rico, and approximately 1,700 towers in Australia.
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