Magal Security Systems (NASDAQ:MAGS) and Wireless Telecom Group (NYSEAMERICAN:WTT) are both small-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Risk & Volatility
Magal Security Systems has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Wireless Telecom Group has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Magal Security Systems and Wireless Telecom Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Magal Security Systems | 0 | 0 | 0 | 0 | N/A |
| Wireless Telecom Group | 0 | 0 | 1 | 0 | 3.00 |
Wireless Telecom Group has a consensus target price of $2.75, indicating a potential upside of 25.57%. Given Wireless Telecom Group's higher probable upside, analysts clearly believe Wireless Telecom Group is more favorable than Magal Security Systems.
Valuation and Earnings
This table compares Magal Security Systems and Wireless Telecom Group's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Magal Security Systems | $81.27 million | 1.28 | $360,000.00 | N/A | N/A |
| Wireless Telecom Group | $41.75 million | 1.14 | $-8,090,000.00 | ($0.09) | -24.33 |
Magal Security Systems has higher revenue and earnings than Wireless Telecom Group.
Profitability
This table compares Magal Security Systems and Wireless Telecom Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Magal Security Systems | -2.66% | -0.83% | -0.56% |
| Wireless Telecom Group | -16.44% | -3.80% | -2.14% |
Insider & Institutional Ownership
16.4% of Magal Security Systems shares are owned by institutional investors. Comparatively, 30.9% of Wireless Telecom Group shares are owned by institutional investors. 24.4% of Magal Security Systems shares are owned by insiders. Comparatively, 27.8% of Wireless Telecom Group 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.
Summary
Magal Security Systems beats Wireless Telecom Group on 7 of the 12 factors compared between the two stocks.
