Echelon (NASDAQ: ELON) and USA Technologies (NASDAQ:USAT) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Valuation & Earnings
This table compares Echelon and USA Technologies’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Echelon||$31.67 million||0.59||-$4.62 million||($1.04)||-3.94|
|USA Technologies||$104.09 million||4.33||-$1.85 million||($0.02)||-420.00|
Risk & Volatility
Echelon has a beta of -0.76, suggesting that its stock price is 176% less volatile than the S&P 500. Comparatively, USA Technologies has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.
This table compares Echelon and USA Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
24.1% of Echelon shares are held by institutional investors. Comparatively, 56.1% of USA Technologies shares are held by institutional investors. 9.1% of Echelon shares are held by insiders. Comparatively, 4.4% of USA Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings for Echelon and USA Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
USA Technologies has a consensus target price of $12.50, suggesting a potential upside of 48.81%. Given USA Technologies’ higher possible upside, analysts plainly believe USA Technologies is more favorable than Echelon.
USA Technologies beats Echelon on 11 of the 12 factors compared between the two stocks.
Echelon Company Profile
Echelon Corporation develops open-standard control networking platforms and delivers elements necessary to design, install, monitor and control communities of devices. The Company’s products enable everyday devices, such as air conditioners, outdoor lighting, appliances, electricity meters, light switches, thermostats and valves to be inter-connected and be part of the Industrial Internet of Things (IIoT) market. It operates through the IIoT segment. Its IIoT business sells products and services that form embedded control platforms, such as LONWORKS and IzoT. The Company’s IIoT business also sells products and services, which include components, control nodes and development software. The Company also offers a solution consisting of outdoor lighting controllers, segment controllers, gateways and software to end customers, such as municipalities, cities, campuses and commercial enterprises. The Company markets its products under the Echelon brand.
USA Technologies Company Profile
USA Technologies, Inc. provides wireless networking, cashless transactions, asset monitoring, and other value-added services in the United States and internationally. It designs and markets systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (M2M) services. The company's ePort Connect solution offers various POS options, card processing, wireless connectivity, customer/consumer, online sales reporting, M2M telemetry and DEX data transfer, over-the-air update capabilities, deployment planning, and value-added services, as well as planning, project management, installation support, marketing, and performance evaluation services. The company's products include ePort, a device that is used in self-service, unattended markets, such as vending, amusement and arcade, and various other kiosk applications, as well as facilitates cashless payments by capturing payment information and transmitting it to its network for authorization with the payment system. It primarily serves small ticket, and beverage and food vending industries, as well as unattended point of sale markets, including amusement, commercial laundry, kiosk, and other. USA Technologies, Inc. was founded in 1992 and is headquartered in Malvern, Pennsylvania.
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