ORBCOMM (ORBC) and Ruckus Wireless (RKUS) Critical Contrast

ORBCOMM (NASDAQ: ORBC) and Ruckus Wireless (NYSE:RKUS) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

78.5% of ORBCOMM shares are held by institutional investors. 9.5% of ORBCOMM shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares ORBCOMM and Ruckus Wireless’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ORBCOMM -15.52% -6.16% -3.25%
Ruckus Wireless -0.92% -1.17% -0.88%

Valuation and Earnings

This table compares ORBCOMM and Ruckus Wireless’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ORBCOMM $202.00 million 3.75 $36.94 million ($0.45) -22.89
Ruckus Wireless N/A N/A N/A N/A N/A

ORBCOMM has higher revenue and earnings than Ruckus Wireless.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for ORBCOMM and Ruckus Wireless, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ORBCOMM 0 0 6 0 3.00
Ruckus Wireless 0 0 0 0 N/A

ORBCOMM presently has a consensus target price of $13.30, indicating a potential upside of 29.13%. Given ORBCOMM’s higher possible upside, analysts clearly believe ORBCOMM is more favorable than Ruckus Wireless.

Summary

ORBCOMM beats Ruckus Wireless on 5 of the 8 factors compared between the two stocks.

ORBCOMM Company Profile

ORBCOMM Inc. is a provider of Internet of Things (IoT) solutions, including network connectivity, devices, device management and Web reporting applications. The Company’s IoT products and services are designed to track, monitor and manage security for a range of assets, such as trailers, trucks, rail cars, sea containers, generators, fluid tanks, marine vessels, diesel or electric powered generators (gensets), oil and gas wells, pipeline monitoring equipment, irrigation control systems, and utility meters, in industries for transportation and supply chain, heavy equipment, fixed asset monitoring, maritime and government. It also provides Automatic Identification System (AIS) data services to assist in vessel navigation and to manage maritime safety for government and commercial customers across the world. It provides its services using various network platforms, including its own constellation of low-Earth orbit (LEO) satellites.

Ruckus Wireless Company Profile

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.

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