xG Technology (XGTI) vs. Iridium Communications (IRDM) Head to Head Survey

xG Technology (NASDAQ: XGTI) and Iridium Communications (NASDAQ:IRDM) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Insider and Institutional Ownership

3.4% of xG Technology shares are owned by institutional investors. Comparatively, 88.6% of Iridium Communications shares are owned by institutional investors. 9.1% of xG Technology shares are owned by company insiders. Comparatively, 5.6% of Iridium Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares xG Technology and Iridium Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
xG Technology -46.88% -61.31% -33.35%
Iridium Communications 44.81% 5.19% 2.04%

Valuation and Earnings

This table compares xG Technology and Iridium Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
xG Technology $47.82 million 0.25 -$10.54 million N/A N/A
Iridium Communications $448.05 million 4.40 $233.85 million $0.70 25.50

Iridium Communications has higher revenue and earnings than xG Technology.

Analyst Recommendations

This is a summary of recent ratings for xG Technology and Iridium Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
xG Technology 0 1 1 0 2.50
Iridium Communications 0 1 2 0 2.67

xG Technology currently has a consensus price target of $3.75, indicating a potential upside of 406.76%. Iridium Communications has a consensus price target of $16.00, indicating a potential downside of 10.36%. Given xG Technology’s higher possible upside, analysts clearly believe xG Technology is more favorable than Iridium Communications.

Risk and Volatility

xG Technology has a beta of -0.51, meaning that its stock price is 151% less volatile than the S&P 500. Comparatively, Iridium Communications has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.

Summary

Iridium Communications beats xG Technology on 10 of the 12 factors compared between the two stocks.

About xG Technology

xG Technology, Inc. designs, develops, and delivers advanced wireless communications solutions worldwide. It offers electronic news gathering, wireless camera, portable microwave, and fixed point to point systems for the broadcasting market; wireless camera systems and mobile radios for the sports and entertainment market; and wireless video solutions, including manned and unmanned aerial and ground systems, mobile and handheld receive systems, and transmitters for the government/surveillance market. The company also provides microwave radio components, and satellite communication and associated amplifier products. In addition, it offers xMax, a mobile voice over Internet protocol (VoIP) and broadband data system, which utilizes an end-to-end Internet protocol (IP) system architecture; xMax CN5100 mobile hotspot, a device that allows users of Wi-Fi enabled smartphones, tablets, notebooks, and other devices to access the Internet through the xMax cognitive radio network; xMax CN3100 vehicle modem, which acts as a transparent protocol bridge allowing users of WiFi-enabled devices to access the Internet through the xMax cognitive radio network; xMax CN3200 dual-band routing modem for use in fixed and mobile applications; CN1100 access point, an IP wireless access point that delivers wide area coverage and broadband throughput for fixed, nomadic, and mobile applications; and CN7000 mobile control center, which controls the delivery of voice and data services, and manages various elements in the regional network. Further, the company offers xMonitor, which monitors the status and health of various access points, mobile control center elements, and VoIP core elements; and xDrive, a drive mapping utility designed to gather, display, and log performance statistics from mobile hotspot, dual-band routing modem, and CN3100 vehicle modem. xG Technology, Inc. was founded in 2002 and is headquartered in Sarasota, Florida.

About Iridium Communications

Iridium Communications Inc. provides mobile voice and data communications services through satellite to businesses, the U.S. and foreign governments, non-governmental organizations, and consumers worldwide. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of things (IoT) services. It also provides other services, such as inbound connections from the public switched telephone network, short message, subscriber identity module, activation, customer reactivation, and other peripheral services. In addition, the company offers voice and data solutions comprising personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; submarine communications applications; specialized communications solutions for high-value individuals; mobile communications and data devices for the military and intelligence community, such as secure satellite handsets, as well as netted voice, messaging, and paging services; and maintenance services for the department of defense's dedicated gateway. Further, it provides satellite handsets, personal connectivity devices, voice and data modems, broadband data devices, and IoT data devices; various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, charging units, and others; and engineering and support services. Iridium Communications Inc. sells its products and services to commercial end users through a wholesale distribution network that include service providers, and value-added resellers and manufacturers. The company was formerly known as Iridium Holdings LLC and changed its name to Iridium Communications Inc. in September 2009. Iridium Communications Inc. was founded in 2000 and is headquartered in McLean, Virginia.

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