Iteris (ITI) vs. DSP Group (DSPG) Critical Analysis
Iteris (NASDAQ: ITI) and DSP Group (NASDAQ:DSPG) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.
This table compares Iteris and DSP Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Iteris and DSP Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Iteris presently has a consensus target price of $8.00, suggesting a potential upside of 30.29%. DSP Group has a consensus target price of $14.20, suggesting a potential upside of 19.83%. Given Iteris’ stronger consensus rating and higher possible upside, analysts clearly believe Iteris is more favorable than DSP Group.
Institutional & Insider Ownership
32.5% of Iteris shares are held by institutional investors. Comparatively, 74.3% of DSP Group shares are held by institutional investors. 14.9% of Iteris shares are held by insiders. Comparatively, 6.0% of DSP Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Iteris and DSP Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Iteris||$99.24 million||2.01||-$2.20 million||($0.15)||-40.93|
|DSP Group||$133.28 million||1.98||$4.18 million||$0.13||91.15|
DSP Group has higher revenue and earnings than Iteris. Iteris is trading at a lower price-to-earnings ratio than DSP Group, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Iteris has a beta of -0.44, meaning that its share price is 144% less volatile than the S&P 500. Comparatively, DSP Group has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.
DSP Group beats Iteris on 9 of the 13 factors compared between the two stocks.
Iteris Company Profile
Iteris, Inc. is a provider of information solutions for both the traffic management and global agribusiness markets. The Company operates through three segments: Roadway Sensors, Transportation Systems and Performance Analytics. The Roadway Sensors segment provides various vehicle detection and information systems and products for traffic intersection control, incident detection and roadway traffic data collection applications. The Transportation Systems segment includes transportation engineering and consulting services, and the development of transportation management and traveler information systems for the Intelligent Transportation Systems (ITS) industry. The Performance Analytics segment includes iPeMS, its specialized transportation performance measurement and traffic analytics solutions, as well as ClearPath Weather, its road-maintenance applications, and ClearAg, its precision agriculture solutions.
DSP Group Company Profile
DSP Group, Inc. is a global provider of wireless and audio chipset solutions for converged communications. Delivering semiconductor system solutions with software and hardware reference designs, the Company enables original equipment manufacturers, original design manufacturers, consumer electronics manufacturers and service providers to develop new products. Its segments include Home, Office and Mobile. The Home segment includes wireless chipset solutions for converged communication at home. The Office segment offers solution for Voice-over-Internet protocol (VoIP) office products, including office solutions that provide businesses with VoIP terminals with converged voice and data applications. The Mobile segment offers products for the mobile market that provides voice enhancement, always-on and far-end noise elimination targeted for mobile phone and mobile headsets and wearable devices that incorporate its noise suppression and voice quality enhancement HDClear technology.
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