Sierra Wireless (SWIR) versus EMCORE (EMKR) Critical Contrast
Sierra Wireless (NASDAQ: SWIR) and EMCORE (NASDAQ:EMKR) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Earnings & Valuation
This table compares Sierra Wireless and EMCORE’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sierra Wireless||$615.61 million||1.20||$15.38 million||$0.72||28.61|
|EMCORE||$122.89 million||1.37||$8.23 million||$0.31||20.00|
This is a summary of current ratings and price targets for Sierra Wireless and EMCORE, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sierra Wireless currently has a consensus target price of $26.30, suggesting a potential upside of 27.67%. EMCORE has a consensus target price of $9.13, suggesting a potential upside of 47.18%. Given EMCORE’s stronger consensus rating and higher probable upside, analysts clearly believe EMCORE is more favorable than Sierra Wireless.
Volatility and Risk
Sierra Wireless has a beta of 3.17, indicating that its stock price is 217% more volatile than the S&P 500. Comparatively, EMCORE has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.
This table compares Sierra Wireless and EMCORE’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
21.0% of Sierra Wireless shares are held by institutional investors. Comparatively, 77.6% of EMCORE shares are held by institutional investors. 2.0% of Sierra Wireless shares are held by company insiders. Comparatively, 0.8% of EMCORE 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.
Sierra Wireless beats EMCORE on 8 of the 14 factors compared between the two stocks.
About Sierra Wireless
Sierra Wireless, Inc. is engaged in building the Internet of Things (IoT) with wireless solutions for organizations. The Company’s OEM Solution segment offers cellular embedded wireless modules for IoT connectivity, including an embedded application framework to support customer applications. The Company’s Enterprise Solution segment offers intelligent routers and gateways, including management tools and applications that enable cellular connectivity. The Company’s Cloud and Connectivity Services segment offers a cloud based platform for deploying and managing IoT applications, Smart SIM supported by mobile core networks, and managed wireless broadband services to enable customer IoT deployments. The Company offers a portfolio of second generation, third generation, and fourth generation cellular embedded wireless modules and gateways, integrated with its secure cloud and connectivity services. The Company offers its products to original equipment manufacturers (OEMs) and enterprises.
EMCORE Corporation is engaged in designing and manufacturing indium phosphide (InP) optical chips, components, subsystems and systems for the broadband and specialty fiber optics market. The Company focuses on linear fiber optic transmission technology. The Company operates through Fiber Optics segment. The Company provides optical components, and also end-to-end solutions for high-speed communications network infrastructures. The Company’s optical technologies are designed for cable television (CATV) and fiber-to-the-premise (FTTP) networks, telecommunications and data centers, satellite communications, aerospace and defense, wireless networks, and broadcast and professional audio/video systems. The Company’s fiber optics products enable information that is modulated on light signals to be transmitted, routed (switched) and received in communication systems and networks.
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