Frequency Electronics (NASDAQ:FEIM) and Giga-tronics (OTCMKTS:GIGA) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Frequency Electronics and Giga-tronics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Frequency Electronics $39.41 million 2.37 -$23.77 million N/A N/A
Giga-tronics $9.80 million 0.31 -$3.10 million N/A N/A

Giga-tronics has lower revenue, but higher earnings than Frequency Electronics.

Analyst Recommendations

This is a summary of recent ratings and price targets for Frequency Electronics and Giga-tronics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Frequency Electronics 0 0 0 0 N/A
Giga-tronics 0 0 0 0 N/A

Volatility and Risk

Frequency Electronics has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Giga-tronics has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares Frequency Electronics and Giga-tronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Frequency Electronics -63.43% -20.58% -15.79%
Giga-tronics -11.78% N/A -23.97%

Insider & Institutional Ownership

42.5% of Frequency Electronics shares are owned by institutional investors. Comparatively, 0.0% of Giga-tronics shares are owned by institutional investors. 41.7% of Frequency Electronics shares are owned by company insiders. Comparatively, 12.9% of Giga-tronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Frequency Electronics beats Giga-tronics on 5 of the 9 factors compared between the two stocks.

About Frequency Electronics

Frequency Electronics, Inc. designs, develops, manufactures, and sells precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time, frequency generation, and synchronization products and subsystems used in communication satellites, terrestrial cellular telephone, or other ground-based telecommunication stations; and other components and systems for the United States military. The FEI-Zyfer segment designs, develops, and manufactures products for precision time, and frequency generation and synchronization primarily incorporating global positioning system technologies into communications systems, computer networks, test equipment, and military command and control terminals for ground and satellite link applications. The company's products are used in commercial, government satellite payload systems, secure communications, command, control, communication, computer, intelligence, security and reconnaissance, counter measures, and electronic warfare applications for the United States government on land, sea, and air-borne platforms. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.

About Giga-tronics

Giga-tronics Incorporated, together with its subsidiaries, designs, manufactures, and markets modular test products for electronic warfare in the Americas, Europe, Asia, and internationally. The company operates through two segments, Microsource and the Giga-tronics Division. The Microsource segment develops and manufactures a line of yttrium, iron, and garnet tuned oscillators, filters, and microwave synthesizers for use in operational applications, as well as in manufacturing a range of microwave instruments and devices. The Giga-tronics Division segment designs, manufactures, and markets a modular microwave test products primarily for testing RADAR and electronic warfare equipment of the defense electronics market. This segment serves prime defense contractors, the armed services, and research institutes. Giga-tronics Incorporated was founded in 1980 and is based in Dublin, California.

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