Boingo Wireless (NASDAQ: WIFI) and Towerstream (OTCMKTS:TWER) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Boingo Wireless and Towerstream, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boingo Wireless 0 0 8 0 3.00
Towerstream 0 0 0 0 N/A

Boingo Wireless currently has a consensus target price of $31.17, indicating a potential upside of 2.42%. Given Boingo Wireless’ higher probable upside, research analysts plainly believe Boingo Wireless is more favorable than Towerstream.

Institutional & Insider Ownership

92.8% of Boingo Wireless shares are owned by institutional investors. 3.8% of Boingo Wireless shares are owned by company insiders. Comparatively, 6.4% of Towerstream shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Boingo Wireless and Towerstream’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boingo Wireless -2.44% -5.51% -1.44%
Towerstream -44.17% N/A -44.08%

Risk & Volatility

Boingo Wireless has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Towerstream has a beta of -0.05, indicating that its stock price is 105% less volatile than the S&P 500.

Valuation & Earnings

This table compares Boingo Wireless and Towerstream’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boingo Wireless $204.37 million 6.30 -$19.36 million ($0.49) -62.10
Towerstream $26.21 million 0.04 -$12.46 million N/A N/A

Towerstream has lower revenue, but higher earnings than Boingo Wireless.

Summary

Boingo Wireless beats Towerstream on 8 of the 11 factors compared between the two stocks.

Boingo Wireless Company Profile

Boingo Wireless, Inc., together with its subsidiaries, provides wireless connectivity solutions for smartphones, tablets, laptops, wearables, and other wireless-enabled consumer devices. It designs, builds, monitors, and maintains distributed antenna systems (DAS), Wi-Fi, and small cell networks at managed and operated hotspot locations, such as airports, transportation hubs, stadiums, arenas, military bases, universities, convention centers, and office campuses in North America, Latin America, Europe, the Middle East, Africa, and Asia; and offers software applications and solutions to access its Wi-Fi network of approximately 1.5 million hotspots. The company also provides Internet protocol television services for military servicemen and women living in the barracks of the United States army, air force, and marine bases; and enables individuals to purchase Internet access at its managed and operated hotspots and select partner locations through month-to-month subscription and single-use access plans. In addition, it offers access to DAS at certain of its managed and operated hotspot locations to telecom operator partners; and carrier offload services, Wi-Fi roaming and software services, and turn-key solutions to network operators, device manufacturers, technology companies, enterprise software and services companies, venue operators, and financial services companies, as well as provides display advertising, sponsored access, and promotional programs. The company was formerly known as Project Mammoth, Inc. and changed its name to Boingo Wireless, Inc. in October 2001. Boingo Wireless, Inc. was founded in 2001 and is headquartered in Los Angeles, California.

Towerstream Company Profile

Towerstream Corporation, together with its subsidiaries, provides fixed wireless broadband services over a wireless network transmitting over regulated and unregulated radio spectrum to commercial customers in the United States. Its wireless broadband service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data, and video services. The company also offers business class Internet services, such as single tenant service that delivers fixed wireless broadband to a single client through a radio receiver/transmitter on the client's building dedicated solely to that client; and on-net services to connect building at once and at a cost similar for one high bandwidth customer requiring point-to-point equipment. In addition, it provides temporary Internet solutions to provide solutions for a client's short-term connection requirements in locations where fiber, copper, and cable infrastructure does not exist or is cost prohibitive. Further, the company offers wholesale Internet services to deliver dedicated Internet access and point-to-point transport solutions with bandwidth options from 5Mbps to 10mbps through fixed wireless network. It serves business customers in New York City, Boston, Chicago, Los Angeles, San Francisco, Seattle, Miami, Dallas-Fort Worth, Houston, Philadelphia, Las Vegas-Reno, and Providence-Newport. The company offers its services through direct sales force. Towerstream Corporation was founded in 1999 and is headquartered in Middletown, Rhode Island.

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