Comparing Oclaro (OCLR) and Airgain (AIRG)

Airgain (NASDAQ: AIRG) and Oclaro (NASDAQ:OCLR) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Airgain and Oclaro, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Airgain 0 1 2 0 2.67
Oclaro 0 3 10 1 2.86

Airgain currently has a consensus price target of $14.67, suggesting a potential upside of 62.96%. Oclaro has a consensus price target of $10.54, suggesting a potential upside of 49.48%. Given Airgain’s higher probable upside, equities analysts clearly believe Airgain is more favorable than Oclaro.

Risk & Volatility

Airgain has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, Oclaro has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Airgain and Oclaro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Airgain 2.30% 4.82% 3.98%
Oclaro 23.00% 23.17% 17.91%

Insider & Institutional Ownership

23.0% of Airgain shares are held by institutional investors. Comparatively, 65.6% of Oclaro shares are held by institutional investors. 23.4% of Airgain shares are held by insiders. Comparatively, 2.0% of Oclaro shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Airgain and Oclaro’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Airgain $49.52 million 1.74 $1.14 million $0.11 81.83
Oclaro $600.97 million 1.99 $127.85 million $0.82 8.60

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

Summary

Oclaro beats Airgain on 11 of the 15 factors compared between the two stocks.

Airgain Company Profile

Airgain, Inc. is a provider of embedded antenna technologies used to enable wireless networking across a range of home, enterprise and industrial devices. The Company’s antennas are found in devices deployed in carrier, enterprise and residential wireless networks and systems, including set top boxes, access points, routers, gateways and digital televisions. It offers six product lines, including MaxBeam High Gain Embedded Antennas, Profile Embedded Antennas, Profile Contour Embedded Antennas, Ultra Embedded Antennas, OmniMax High Performance External Antennas and MaxBeam Carrier Class Antennas. The Company, through its design, integration and testing of embedded antenna technology, provides its technology to the residential wireless local area network, wireless fidelity and antenna market, and also supplies to carriers, original equipment manufacturers, original design manufacturers and system designers. The Company supplies its products in the United States, Europe, Canada and Asia.

Oclaro Company Profile

Oclaro, Inc. is a provider of optical components, modules and subsystems for the core optical transport, service provider, enterprise and data center markets. The Company provides various solutions for optical networks and interconnects driving the next wave of streaming video, cloud computing, application virtualization and other bandwidth-intensive and high-speed applications. The Company’s product offerings include client side transceivers, line side transceivers, tunable laser transmitters, lithium niobate modulators, transponder modules, and discrete lasers and receivers. It designs, manufactures and markets optical components, modules and subsystems that generate, detect, combine and separate light signals in optical communications networks. The Company supplies transmission products at the component level and the module level into 10 gigabits per second (Gb/s), 40 Gb/s and 100 Gb/s communications solutions.

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