Airgain (NASDAQ:AIRG – Get Free Report) and Ubiquiti (NYSE:UI – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.
Profitability
This table compares Airgain and Ubiquiti’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Airgain | -12.59% | -13.65% | -8.65% |
| Ubiquiti | 30.08% | 80.29% | 53.47% |
Earnings and Valuation
This table compares Airgain and Ubiquiti”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Airgain | $52.66 million | 1.00 | -$6.43 million | ($0.52) | -7.63 |
| Ubiquiti | $3.27 billion | 12.35 | $960.30 million | $17.71 | 37.76 |
Ubiquiti has higher revenue and earnings than Airgain. Airgain is trading at a lower price-to-earnings ratio than Ubiquiti, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
52.8% of Airgain shares are held by institutional investors. Comparatively, 4.0% of Ubiquiti shares are held by institutional investors. 17.5% of Airgain shares are held by insiders. Comparatively, 93.0% of Ubiquiti shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Airgain and Ubiquiti, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Airgain | 1 | 1 | 3 | 0 | 2.40 |
| Ubiquiti | 1 | 2 | 1 | 0 | 2.00 |
Airgain currently has a consensus price target of $6.90, indicating a potential upside of 73.80%. Ubiquiti has a consensus price target of $758.50, indicating a potential upside of 13.42%. Given Airgain’s stronger consensus rating and higher probable upside, research analysts clearly believe Airgain is more favorable than Ubiquiti.
Volatility and Risk
Airgain has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Ubiquiti has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.
Summary
Ubiquiti beats Airgain on 10 of the 14 factors compared between the two stocks.
About Airgain
Airgain, Inc. develops wireless connectivity solutions for devices and networks. Its offerings include embedded antenna systems, external antennas and integrated connectivity products designed to support technologies such as cellular, Wi-Fi and the Internet of Things. The company serves customers in markets including automotive, enterprise and consumer electronics. Its products are used in applications ranging from connected vehicles and networking equipment to smart devices, and Airgain also provides engineering and design services to help customers integrate wireless connectivity into their products.
About Ubiquiti
Ubiquiti Inc. develops and sells networking technology for businesses, service providers and consumers. Its products include wireless access points, routers, switches and broadband wireless equipment, along with network management software and security devices such as cameras and access control systems. The company markets products under brands including UniFi, airMAX, EdgeMAX and AmpliFi. Its UniFi platform brings together networking, video surveillance and access control products with centralized management tools.
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