Franklin Wireless (NASDAQ:FKWL – Get Free Report) and ClearOne (NASDAQ:CLRO – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.
Risk and Volatility
Franklin Wireless has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, ClearOne has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
This table compares Franklin Wireless and ClearOne’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings & Valuation
This table compares Franklin Wireless and ClearOne’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Franklin Wireless||$47.50 million||0.76||-$2.86 million||($0.16)||-19.13|
|ClearOne||$25.20 million||0.73||$20.56 million||$0.84||0.92|
ClearOne has lower revenue, but higher earnings than Franklin Wireless. Franklin Wireless is trading at a lower price-to-earnings ratio than ClearOne, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
9.9% of Franklin Wireless shares are owned by institutional investors. Comparatively, 7.3% of ClearOne shares are owned by institutional investors. 29.6% of Franklin Wireless shares are owned by company insiders. Comparatively, 0.9% of ClearOne shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Franklin Wireless beats ClearOne on 6 of the 11 factors compared between the two stocks.
About Franklin Wireless
Franklin Wireless Corp. provides integrated wireless solutions. The company's products include 5G/4G wireless broadband products, such as wi-fi mobile hotspot, fixed wireless routers, and enterprise gateway CPE; and IoT tracking and connected devices, including smart IoT tracking device, connected car, and home phone connect. It also offers IOT server platform and application, which comprises Pintrac, a cloud based telecom grade server platform; Pintrac Mobile Device Management, an LTE hotspot; Pintrac Pet, a pet tracking application; Pintrac Auto that tracks, locates, and manages vehicles for consumers and businesses; and JEXtream, a cloud based telecom grade server platform for 5G devices and routers that enables enhanced remote management of device functionality. The company directly markets and sells its products to wireless operators, as well as indirectly through strategic partners and distributors located primarily in the North America, the Caribbean and South America, and Asia. Franklin Wireless Corp. was founded in 1981 and is headquartered in San Diego, California.
ClearOne, Inc., together with its subsidiaries, designs, develops, and sells conferencing, collaboration, and network streaming solutions for voice and visual communications in the United States and internationally. The company offers a range of audio conferencing products, including professional audio conferencing and sound-reinforcement products for use in enterprise, healthcare, education and distance learning, government, legal, and finance organizations; mid-tier premium conferencing products for smaller rooms, and small and medium businesses, which interface with video and Web conferencing systems; USB-based personal and group speakerphones that could be used with PCs, laptops, tablets, smartphones, and other portable devices; and traditional tabletop conferencing phones used in conference rooms and offices. It also provides professional microphones consisting of beamforming microphones, ceiling microphones, and wireless microphones. In addition, the company offers video products, such as video conferencing and collaboration solutions; professional-grade cameras; and AV networking, which deliver the IP A/V experience by streaming time sensitive high definition audio and video, and control over TCP/IP networks. It sells its commercial products to a network of independent professional audiovisual, information technology, and telecommunications distributors, as well as systems integrators, dealers, value-added resellers, and end-users. The company was incorporated in 1983 and is headquartered in Salt Lake City, Utah.
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