PC Tel (NASDAQ:PCTI) and Aftermaster (OTCMKTS:AFTM) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Valuation and Earnings

This table compares PC Tel and Aftermaster’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PC Tel $82.98 million 1.10 -$12.89 million ($0.23) -21.52
Aftermaster $1.65 million 1.86 -$4.25 million N/A N/A

Aftermaster has lower revenue, but higher earnings than PC Tel.

Risk and Volatility

PC Tel has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500. Comparatively, Aftermaster has a beta of -3.11, meaning that its stock price is 411% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for PC Tel and Aftermaster, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PC Tel 0 1 1 0 2.50
Aftermaster 0 0 0 0 N/A

PC Tel currently has a consensus target price of $5.25, suggesting a potential upside of 6.06%. Given PC Tel’s higher possible upside, equities research analysts clearly believe PC Tel is more favorable than Aftermaster.

Insider and Institutional Ownership

62.9% of PC Tel shares are held by institutional investors. Comparatively, 0.0% of Aftermaster shares are held by institutional investors. 4.7% of PC Tel shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares PC Tel and Aftermaster’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PC Tel -15.09% -2.13% -1.81%
Aftermaster -965.70% N/A -928.07%

Dividends

PC Tel pays an annual dividend of $0.22 per share and has a dividend yield of 4.4%. Aftermaster does not pay a dividend. PC Tel pays out -95.7% of its earnings in the form of a dividend. PC Tel has increased its dividend for 2 consecutive years.

Summary

PC Tel beats Aftermaster on 11 of the 14 factors compared between the two stocks.

PC Tel Company Profile

PCTEL, Inc., together with its subsidiaries, delivers performance critical telecom solutions in the Asia Pacific, Europe, the Middle East, Africa, and the Americas. The company designs and manufactures precision antennas, which are used primarily in small cells, enterprise Wi-Fi access points, fleet management and transit systems, and in equipment and devices for the Industrial Internet of Things. It also offers radio frequency test and measurement tools that enhance the performance of wireless networks. The company serves public and private carriers, wireless infrastructure providers, wireless equipment distributors, and value added resellers, as well as original equipment manufacturers. PCTEL, Inc. was founded in 1994 and is headquartered in Bloomingdale, Illinois.

Aftermaster Company Profile

AfterMaster, Inc., together with its subsidiaries, operates as an audio technology company in the United States. It develops and commercializes proprietary audio and video technologies for professional and consumer use. The company offers AfterMaster audio, a mastering, remastering, and audio processing technology that makes various audio source sounds louder, fuller, deeper, and clearer; ProMaster, an online music mastering, streaming, and storage service designed for independent artists; and Aftermaster Pro, a personal audio re-mastering device. It also provides Aftermaster Studio Pro and MyStudio, which are products for use in commercial audio applications. In addition, AfterMaster, Inc. operates six recording and mastering studios that engineer mix and master music for independent and high profile artists. The company was formerly known as Studio One Media, Inc. and changed its name to AfterMaster, Inc. in September 2015. AfterMaster, Inc. was incorporated in 1988 and is based in Scottsdale, Arizona.

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