Ubiquiti Networks (NASDAQ:UBNT) versus Airgain (AIRG) Critical Contrast

Ubiquiti Networks (NASDAQ: UBNT) and Airgain (NASDAQ:AIRG) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Analyst Recommendations

This is a breakdown of current ratings for Ubiquiti Networks and Airgain, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ubiquiti Networks 0 4 0 0 2.00
Airgain 0 1 2 0 2.67

Ubiquiti Networks currently has a consensus target price of $67.67, indicating a potential downside of 20.35%. Airgain has a consensus target price of $14.00, indicating a potential upside of 55.38%. Given Airgain’s stronger consensus rating and higher possible upside, analysts plainly believe Airgain is more favorable than Ubiquiti Networks.

Risk and Volatility

Ubiquiti Networks has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Airgain has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500.

Profitability

This table compares Ubiquiti Networks and Airgain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ubiquiti Networks 19.15% 56.13% 25.94%
Airgain -0.68% 1.58% 1.31%

Insider & Institutional Ownership

30.4% of Ubiquiti Networks shares are owned by institutional investors. Comparatively, 30.3% of Airgain shares are owned by institutional investors. 70.3% of Ubiquiti Networks shares are owned by insiders. Comparatively, 20.4% of Airgain shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Ubiquiti Networks and Airgain’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ubiquiti Networks $865.27 million 7.27 $257.50 million $3.09 27.50
Airgain $49.52 million 1.76 $1.14 million $0.11 81.91

Ubiquiti Networks has higher revenue and earnings than Airgain. Ubiquiti Networks is trading at a lower price-to-earnings ratio than Airgain, indicating that it is currently the more affordable of the two stocks.

Summary

Ubiquiti Networks beats Airgain on 9 of the 14 factors compared between the two stocks.

Ubiquiti Networks Company Profile

Ubiquiti Networks, Inc. develops networking technology for service providers, enterprises, and consumers worldwide. The company's service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other complimentary WLAN products. Its products and solutions include radios, antennas, software, communications protocols, and management tools to deliver carrier and enterprise class wireless broadband access and other services in the unlicensed RF spectrum. The company also provides technology platforms, such as airMAX platform, which includes proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a disruptive software and system routing platform; airFiber, a point-to-point radio system; and UFiber platform to build fiber Internet networks. In addition, it offers UniFi Enterprise Wi-Fi System that includes Wi-Fi certified hardware with a software based management controller; UniFi Video IP cameras for data transmission and power-over-Ethernet; UniFi Switches that deliver performance, switching, and PoE+ support for enterprise networks; and UniFi Security Gateway that extends the UniFi enterprise solutions to provide routing and network security, as well as develops AmpliFi platform, a Wi-Fi system solution for connected homes. Further, the company provides embedded radio products; and mounting brackets, cables, and power over Ethernet adapters. The company was formerly known as Pera Networks, Inc. and changed its name to Ubiquiti Networks, Inc. in 2005. Ubiquiti Networks, Inc. was incorporated in 2003 and is headquartered in New York, New York.

Airgain Company Profile

Airgain, Inc. designs, develops, and engineers antenna products for original equipment and design manufacturers, chipset vendors, and service providers worldwide. Its products include MaxBeam embedded antennas; profile embedded antennas; profile contour embedded antennas; ultra-embedded antennas; omnimax high performance external antennas; MaxBeam carrier class antennas; and SmartMax embedded antennas, as well as automotive, fleet, public safety, and M2M antennas. The company provides embedded antenna technologies to enable high performance wireless networking across a range of home, enterprise, automotive, and Internet of Things. As of December 31, 2017, it had 131 issued patents in the United States, 23 companion patents outside the United States, and 81 patent applications on file. The company was formerly known as AM Group and changed its name to Airgain, Inc. in 2004. Airgain, Inc. was founded in 1995 and is headquartered in San Diego, California.

Receive News & Ratings for Ubiquiti Networks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ubiquiti Networks and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply