Ruckus Wireless (NYSE: RKUS) and CalAmp Corp. (NASDAQ:CAMP) are both telecommunications services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

72.9% of CalAmp Corp. shares are held by institutional investors. 5.3% of CalAmp Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Ruckus Wireless and CalAmp Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ruckus Wireless -0.92% -1.17% -0.88%
CalAmp Corp. 1.31% 18.18% 7.47%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ruckus Wireless and CalAmp Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ruckus Wireless 0 0 0 0 N/A
CalAmp Corp. 0 5 5 0 2.50

CalAmp Corp. has a consensus target price of $23.00, indicating a potential downside of 5.23%. Given CalAmp Corp.’s higher possible upside, analysts plainly believe CalAmp Corp. is more favorable than Ruckus Wireless.

Earnings and Valuation

This table compares Ruckus Wireless and CalAmp Corp.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ruckus Wireless N/A N/A N/A N/A N/A
CalAmp Corp. $347.32 million 2.49 $35.99 million $0.12 202.27

CalAmp Corp. has higher revenue and earnings than Ruckus Wireless.

Summary

CalAmp Corp. beats Ruckus Wireless on 8 of the 8 factors compared between the two stocks.

About Ruckus Wireless

Ruckus Wireless, Inc. is a supplier of advanced (Wi-Fi) solutions. The Company’s solutions, which it call Smart Wi-Fi, are used by service providers and enterprises to solve a range of network capacity, coverage and reliability challenges associated with wireless traffic demands. It operates through selling controllers and access points along with related software and services segment. The Company markets and sells its products and technology through a network of channel partners to a variety of service providers and enterprises around the world. Its Smart Wi-Fi solutions offer features and functionality, such as enhanced reliability, extended range and scalability. Its products include controllers, indoor and outdoor access points, wireless bridges, controller software platforms, software management solutions, including reporting and analytics, and Wi-Fi-related cloud services, such as location-based positioning, and certificate-based security and on-boarding of Wi-Fi devices.

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.

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