Veea (NASDAQ:VEEA – Get Free Report) and Franklin Wireless (NASDAQ:FKWL – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Analyst Ratings
This is a summary of recent ratings and target prices for Veea and Franklin Wireless, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veea | 1 | 0 | 0 | 0 | 1.00 |
| Franklin Wireless | 1 | 0 | 1 | 0 | 2.00 |
Franklin Wireless has a consensus target price of $6.00, suggesting a potential upside of 147.93%. Given Franklin Wireless’ stronger consensus rating and higher possible upside, analysts clearly believe Franklin Wireless is more favorable than Veea.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veea | $491,488.00 | 22.98 | -$6.66 million | ($5.20) | -0.70 |
| Franklin Wireless | $35.05 million | 0.81 | -$240,000.00 | ($0.06) | -40.33 |
Franklin Wireless has higher revenue and earnings than Veea. Franklin Wireless is trading at a lower price-to-earnings ratio than Veea, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Veea has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, Franklin Wireless has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.
Profitability
This table compares Veea and Franklin Wireless’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veea | N/A | N/A | -41.65% |
| Franklin Wireless | -2.07% | -2.98% | -2.16% |
Insider and Institutional Ownership
25.9% of Veea shares are held by institutional investors. Comparatively, 18.5% of Franklin Wireless shares are held by institutional investors. 60.8% of Veea shares are held by company insiders. Comparatively, 28.4% of Franklin Wireless shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Franklin Wireless beats Veea on 8 of the 14 factors compared between the two stocks.
About Veea
Veea Inc. provides computing, multiaccess multiprotocol communications, edge storage, and cybersecurity solutions. The company offers multiaccess edge computing (MEC) platform that redefines connectivity and computing at the edge by integrating functions of servers, network attached storage (NAS), routers, firewalls, Wi-Fi Access Points, IoT gateways, and 4G and 5G connections; and Veea Edge Platform enables direct connections from the optical fiber, cellular, and satellite networks. It also provides VeeaHub STAX, an edge computing product integrated with wireless access, including Wi-Fi 6; VeeaHub that offers connectivity options for pro indoor smart edge applications; and VeeaHub Outdoor that integrates with wireless connectivity for smart edge applications in outdoor and industrial environments. The company also offers TROLLEE, a smart shopping cart platform; the VeeaHub toolkit; and Veea AdEdge, an advertising platform. Veea Inc. was founded in 2014 and is headquartered in New York, New York.
About Franklin Wireless
Franklin Wireless Corp. provides integrated wireless solutions. The company's products include 5G/4G wireless broadband products, such as wi-fi mobile hotspot, fixed wireless routers, and enterprise gateway CPE; and IoT tracking and connected devices, including smart IoT tracking device, connected car, and home phone connect. It also offers IOT server platform and application, which comprises Pintrac, a cloud based telecom grade server platform; Pintrac Mobile Device Management, an LTE hotspot; Pintrac Pet, a pet tracking application; Pintrac Auto that tracks, locates, and manages vehicles for consumers and businesses; and JEXtream, a cloud based telecom grade server platform for 5G devices and routers that enables enhanced remote management of device functionality. The company directly markets and sells its products to wireless operators, as well as indirectly through strategic partners and distributors located primarily in the North America, the Caribbean and South America, and Asia. Franklin Wireless Corp. was founded in 1981 and is headquartered in San Diego, California.
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