Quantum (NASDAQ:QMCO – Get Free Report) and Foxx Development (NASDAQ:FOXX – Get Free Report) are both small-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Institutional & Insider Ownership
63.7% of Quantum shares are held by institutional investors. Comparatively, 60.4% of Foxx Development shares are held by institutional investors. 41.0% of Quantum shares are held by company insiders. Comparatively, 31.6% of Foxx Development shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Quantum and Foxx Development’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quantum | -73.54% | -3.99% | 2.70% |
| Foxx Development | -100.20% | N/A | -74.38% |
Risk & Volatility
Quantum has a beta of 3.23, suggesting that its stock price is 223% more volatile than the S&P 500. Comparatively, Foxx Development has a beta of -0.26, suggesting that its stock price is 126% less volatile than the S&P 500.
Valuation & Earnings
This table compares Quantum and Foxx Development”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quantum | $279.58 million | 2.16 | -$101.05 million | ($10.89) | -1.40 |
| Foxx Development | $52.58 million | 0.18 | -$52.69 million | ($7.53) | -0.18 |
Foxx Development has lower revenue, but higher earnings than Quantum. Quantum is trading at a lower price-to-earnings ratio than Foxx Development, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Quantum and Foxx Development, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quantum | 1 | 0 | 5 | 0 | 2.67 |
| Foxx Development | 1 | 0 | 0 | 0 | 1.00 |
Quantum currently has a consensus price target of $28.33, indicating a potential upside of 86.02%. Given Quantum’s stronger consensus rating and higher probable upside, analysts plainly believe Quantum is more favorable than Foxx Development.
Summary
Quantum beats Foxx Development on 10 of the 14 factors compared between the two stocks.
About Quantum
Quantum Corporation provides data storage and management solutions for organizations that create and retain large volumes of unstructured data, including video, images and other digital content. Its customers include businesses and institutions in areas such as media and entertainment, government, life sciences and industrial markets. The company’s offerings include StorNext shared-storage and data-management software, Scalar tape libraries for backup and archiving, and ActiveScale object storage.
About Foxx Development
Foxx Development Holdings Inc. is a consumer electronics and integrated Internet-of-Things solution company catering to both retail and institutional clients. The company currently sells a diverse range of products including mobile phones, tablets and other consumer electronics devices principally in United State and is in the process of developing and distributing end-to-end communication terminals and IoT solutions. Foxx Development Holdings Inc., formerly known as Acri Capital Acquisition Corporation, is based in Austin, TX.
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