Head to Head Survey: Inseego (NASDAQ:INSG) vs. ADTRAN (NASDAQ:ADTN)

ADTRAN (NASDAQ:ADTN) and Inseego (NASDAQ:INSG) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for ADTRAN and Inseego, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADTRAN	2	1	4	0	2.29
Inseego	1	2	3	1	2.57

ADTRAN presently has a consensus price target of $14.67, suggesting a potential upside of 74.60%. Inseego has a consensus price target of $14.60, suggesting a potential upside of 211.30%. Given Inseego’s stronger consensus rating and higher possible upside, analysts clearly believe Inseego is more favorable than ADTRAN.

Volatility and Risk

ADTRAN has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Inseego has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Insider & Institutional Ownership

80.6% of ADTRAN shares are owned by institutional investors. Comparatively, 34.2% of Inseego shares are owned by institutional investors. 2.2% of ADTRAN shares are owned by insiders. Comparatively, 21.7% of Inseego shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares ADTRAN and Inseego”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADTRAN	$1.08 billion	0.63	-$45.66 million	($0.28)	-30.00
Inseego	$166.19 million	0.46	$840,000.00	$0.13	36.08

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

Profitability

This table compares ADTRAN and Inseego’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADTRAN	-2.29%	14.24%	1.66%
Inseego	-6.41%	-13.38%	-8.89%

Summary

Inseego beats ADTRAN on 8 of the 15 factors compared between the two stocks.

About ADTRAN

ADTRAN Holdings, Inc., through its subsidiaries, provides networking and communications platforms, software, systems, and services in the United States, Germany, the United Kingdom, and internationally. It operates through two segments, Network Solutions, and Services & Support. It offers residential gateways; ethernet passive optical network ONUs; gigabit passive optical network/XGS-PON ONTs; traditional SSE, routers, and switches; edge cloud; carrier ethernet network interface devices; Optical Line Terminals; Packet Aggregation, Copper Access, and Oscilloquartz; optical transport and engine solutions; infrastructure monitoring solution; and training, professional, software, and managed services. The company also provides various software, such as Mosaic One SaaS, n-Command, Procloud, MCP, AOE and ACI-E, and Ensemble Controller. It serves large, medium, and small service providers; alternative service providers, such as utilities, municipalities and fiber overbuilders; cable/MSOs; and SMBs and distributed enterprises. ADTRAN Holdings, Inc. was incorporated in 1985 and is headquartered in Huntsville, Alabama.

About Inseego

Inseego Corp. engages in the design and development of cloud-managed wireless wide area network (WAN) and intelligent edge solutions for businesses, consumers, and governments worldwide. The company provides 5G and 4G mobile broadband solutions, such as mobile hotspots under the MiFi brand; and 4G VoLTE products and 4G USB modems. It also offers fixed wireless access solutions, including indoor, outdoor, and industrial routers and gateways. In addition, the company provides Inseego Connect solution for device management; and 5G SD EDGE solution for secure networking enabling corporate managed mobile remote workforce. Further, it offers SaaS solutions, including telematic and asset tracking solution that provides live maps and data to improve driver safety and performance; Inseego Subscribe, a wireless subscriber management solution for carrier’s management of their government and complex enterprise customer subscriptions. The company was founded in 1996 and is based in San Diego, California.