Analyzing SBA Communications Corporation (SBAC) and Inseego Corp. (INSG)
SBA Communications Corporation (NASDAQ: SBAC) and Inseego Corp. (NASDAQ:INSG) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
This table compares SBA Communications Corporation and Inseego Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SBA Communications Corporation||2.19%||-2.64%||0.67%|
This is a summary of recent recommendations for SBA Communications Corporation and Inseego Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SBA Communications Corporation||0||3||12||0||2.80|
SBA Communications Corporation presently has a consensus price target of $140.31, suggesting a potential downside of 1.81%. Inseego Corp. has a consensus price target of $1.75, suggesting a potential upside of 62.04%. Given Inseego Corp.’s higher probable upside, analysts plainly believe Inseego Corp. is more favorable than SBA Communications Corporation.
Earnings & Valuation
This table compares SBA Communications Corporation and Inseego Corp.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SBA Communications Corporation||$1.68 billion||10.24||$1.10 billion||$0.31||460.98|
|Inseego Corp.||$232.00 million||0.26||-$8.41 million||($1.33)||-0.81|
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.
Institutional & Insider Ownership
99.2% of SBA Communications Corporation shares are held by institutional investors. Comparatively, 12.2% of Inseego Corp. shares are held by institutional investors. 2.4% of SBA Communications Corporation shares are held by insiders. Comparatively, 4.1% of Inseego Corp. 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.
Volatility & Risk
SBA Communications Corporation has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Inseego Corp. has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.
SBA Communications Corporation beats Inseego Corp. on 11 of the 13 factors compared between the two stocks.
About SBA Communications Corporation
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.
About Inseego Corp.
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.
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