Comparing ERF Wireless (OTCMKTS:ERFB) & Genasys (NASDAQ:GNSS)

Genasys (NASDAQ:GNSS) and ERF Wireless (OTCMKTS:ERFB) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Valuation and Earnings

This table compares Genasys and ERF Wireless”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genasys	$40.76 million	1.93	-$18.11 million	($0.17)	-10.18
ERF Wireless	N/A	N/A	N/A	($1.83)	N/A

ERF Wireless has lower revenue, but higher earnings than Genasys. Genasys is trading at a lower price-to-earnings ratio than ERF Wireless, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

40.0% of Genasys shares are owned by institutional investors. Comparatively, 0.1% of ERF Wireless shares are owned by institutional investors. 8.3% of Genasys shares are owned by company insiders. Comparatively, 5.8% of ERF Wireless shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Genasys and ERF Wireless’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genasys	-10.86%	-264.78%	-9.60%
ERF Wireless	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Genasys and ERF Wireless, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genasys	1	0	2	0	2.33
ERF Wireless	0	0	0	0	0.00

Genasys currently has a consensus target price of $4.20, indicating a potential upside of 142.77%. Given Genasys’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Genasys is more favorable than ERF Wireless.

Summary

Genasys beats ERF Wireless on 7 of the 11 factors compared between the two stocks.

About Genasys

Genasys Inc. engages in the design, development, and commercialization of critical communications hardware and software solutions to alert, inform, and protect people principally in North and South America, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Hardware and Software. It provides Genasys Protect ALERT, an interactive, cloud-based SaaS solution that is designed to enable SLED and enterprise customers to send critical information to at-risk individuals or groups when an emergency occurs using emails, voice calls, text messages, panic buttons, desktop alerts, TV, social media, and other; and Genasys Protect EVAC that enables responding agencies to determine and communicate the proper scope of a response or evacuation by replacing guesswork with data-driven intelligence; and Genasys Protect CONNECT, an instant communication platform that enables first responders and public safety personnel to collaborate and share information in a single space with text, videos, images, and audio from any location. The company also offers Genasys Protect ACOUSTICS, a mass notification speaker system with Genasys protect command-and-control software; and long range acoustic devices, such as acoustic hailing devices which are used to project alert tones and audible voice messages. It sells its products directly to governments, militaries, end-users, and commercial companies. The company was formerly known as LRAD Corporation. Genasys Inc. was incorporated in 1992 and is based in San Diego, California.

About ERF Wireless

ERF Wireless, Inc. provides wireless broadband access solutions for the energy industry in North America. The company conducts its operations through Energy Broadband, Inc., Wireless Bundled Services Division, and Enterprise Network Services segments. It offers wireless bandwidth and related support services, including nomadic terrestrial wireless broadband circuit connectivity to the wellsite; wellsite communications equipment rental; wellsite IT support services; wellsite IT services over broadband; network monitoring and maintenance:; layer 2 secure communications connectivity products rental and services; fixed site terrestrial wireless broadband connectivity; network design and construction; production field supervisory control and data acquisition; and midstream communications, monitoring, and security solutions for the oil and gas industry. The company also provides enterprise-level wireless bandwidth product and services, such as design and implementation of custom Internet wireless bandwidth solutions, including long-term maintenance and network monitoring; reselling arrangements; and secure connectivity services through its CryptoVue product to the regional banking, healthcare, and educational sectors primarily in the rural areas of North America. In addition, it offers commercial and residential wireless bandwidth products and services comprising -speed Internet, voice over Internet protocol services, network monitoring and maintenance services, and video services to commercial businesses and residential customers. The company was founded in 1986 and is headquartered in League City, Texas.