Sierra Wireless (NASDAQ:SWIR) and Energous (NASDAQ:WATT) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Profitability
This table compares Sierra Wireless and Energous' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Sierra Wireless | -10.39% | -14.35% | -7.98% |
Energous | -13,071.48% | -171.68% | -136.99% |
Risk & Volatility
Sierra Wireless has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500. Comparatively, Energous has a beta of 3.99, suggesting that its share price is 299% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Sierra Wireless and Energous, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Sierra Wireless | 2 | 5 | 4 | 0 | 2.18 |
Energous | 0 | 0 | 0 | 0 | N/A |
Sierra Wireless presently has a consensus price target of $19.50, indicating a potential upside of 27.53%. Given Sierra Wireless' higher probable upside, research analysts clearly believe Sierra Wireless is more favorable than Energous.
Institutional & Insider Ownership
46.4% of Sierra Wireless shares are held by institutional investors. Comparatively, 10.5% of Energous shares are held by institutional investors. 2.0% of Sierra Wireless shares are held by insiders. Comparatively, 5.1% of Energous shares are held by 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.
Earnings & Valuation
This table compares Sierra Wireless and Energous' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Sierra Wireless | $713.51 million | 0.79 | $-70,540,000.00 | ($1.02) | -14.99 |
Energous | $200,000.00 | 799.62 | $-38,400,000.00 | ($1.27) | -2.83 |
Energous has lower revenue, but higher earnings than Sierra Wireless. Sierra Wireless is trading at a lower price-to-earnings ratio than Energous, indicating that it is currently the more affordable of the two stocks.
Summary
Sierra Wireless beats Energous on 8 of the 13 factors compared between the two stocks.