xG Technology (XGTI) versus The Competition Critical Analysis

xG Technology (NASDAQ: XGTI) is one of 65 public companies in the “Communications & Networking” industry, but how does it contrast to its rivals? We will compare xG Technology to similar businesses based on the strength of its earnings, analyst recommendations, valuation, risk, dividends, profitability and institutional ownership.

Risk & Volatility

xG Technology has a beta of -0.72, suggesting that its stock price is 172% less volatile than the S&P 500. Comparatively, xG Technology’s rivals have a beta of 1.12, suggesting that their average stock price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for xG Technology and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
xG Technology 0 0 2 0 3.00
xG Technology Competitors 438 2482 4068 163 2.55

xG Technology presently has a consensus target price of $3.75, suggesting a potential upside of 145.10%. As a group, “Communications & Networking” companies have a potential upside of 13.56%. Given xG Technology’s stronger consensus rating and higher probable upside, analysts plainly believe xG Technology is more favorable than its rivals.

Institutional & Insider Ownership

2.3% of xG Technology shares are held by institutional investors. Comparatively, 63.2% of shares of all “Communications & Networking” companies are held by institutional investors. 2.8% of xG Technology shares are held by company insiders. Comparatively, 13.5% of shares of all “Communications & Networking” companies are held by company 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.

Earnings & Valuation

This table compares xG Technology and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
xG Technology $6.57 million -$20.90 million -0.01
xG Technology Competitors $3.38 billion $382.14 million -135.54

xG Technology’s rivals have higher revenue and earnings than xG Technology. xG Technology is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares xG Technology and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
xG Technology -20.76% -26.16% -15.69%
xG Technology Competitors -3.65% -10.31% -1.26%

Summary

xG Technology rivals beat xG Technology on 9 of the 13 factors compared.

About xG Technology

xG Technology, Inc. develops a portfolio of intellectual property, which is embedded in its software algorithms that offer cognitive interference mitigation and spectrum access solutions for a range of applications using commercial off the shelf devices. The Company is a provider of wireless video solutions to broadcast, law enforcement and defense markets, and private mobile broadband networks for use in a range of environments. The Company markets its technology solutions across three business units: Integrated Microwave Technologies (IMT), Vislink Communication Systems and xMax. The Company offers a range of frequency-agnostic cognitive radio solutions. It focuses on various industries across the world, such as telecommunications, cable, defense and public safety, municipal governments, critical infrastructure and markets ranging from rural to urban areas and expeditionary deployments.

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