Contrasting Inseego (NASDAQ:INSG) & Viavi Solutions (NASDAQ:VIAV)

Viavi Solutions (NASDAQ:VIAV) and Inseego (NASDAQ:INSG) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

95.5% of Viavi Solutions shares are owned by institutional investors. Comparatively, 34.2% of Inseego shares are owned by institutional investors. 1.2% of Viavi Solutions shares are owned by insiders. Comparatively, 21.7% of Inseego shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Viavi Solutions has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Inseego has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500.

Valuation & Earnings

This table compares Viavi Solutions and Inseego”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viavi Solutions	$1.52 billion	5.73	-$30.40 million	($0.15)	-235.80
Inseego	$166.19 million	0.44	$840,000.00	$0.13	33.95

Inseego has lower revenue, but higher earnings than Viavi Solutions. Viavi Solutions is trading at a lower price-to-earnings ratio than Inseego, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Viavi Solutions and Inseego’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viavi Solutions	-2.00%	19.60%	7.48%
Inseego	-6.41%	N/A	-8.89%

Analyst Ratings

This is a breakdown of current recommendations for Viavi Solutions and Inseego, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viavi Solutions	1	2	6	0	2.56
Inseego	1	2	3	0	2.33

Viavi Solutions presently has a consensus target price of $55.43, indicating a potential upside of 56.71%. Inseego has a consensus target price of $13.00, indicating a potential upside of 194.52%. Given Inseego’s higher possible upside, analysts clearly believe Inseego is more favorable than Viavi Solutions.

Summary

Viavi Solutions beats Inseego on 8 of the 14 factors compared between the two stocks.

About Viavi Solutions

Viavi Solutions, Inc. engages in the provision of network test, monitoring, and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It operates through the following segments: Network Enablement, Service Enablement, and Optical Security and Performance. The Network Enablement segment offers an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. The Service Enablement segment covers solutions and services primarily for communication service providers, and enterprises that deliver and/or operate broadband and IP networks (fixed and mobile) supporting voice, video, and data services as well as a wide range of applications. The Optical Security and Performance segment leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell products targeting anti-counterfeiting, consumer and industrial, government, healthcare, and other markets. The company was founded in 1979 and is headquartered in Chandler, AZ.

About Inseego

Inseego Corp. engages in the design and development of cloud-managed wireless wide area network (WAN) and intelligent edge solutions for businesses, consumers, and governments worldwide. The company provides 5G and 4G mobile broadband solutions, such as mobile hotspots under the MiFi brand; and 4G VoLTE products and 4G USB modems. It also offers fixed wireless access solutions, including indoor, outdoor, and industrial routers and gateways. In addition, the company provides Inseego Connect solution for device management; and 5G SD EDGE solution for secure networking enabling corporate managed mobile remote workforce. Further, it offers SaaS solutions, including telematic and asset tracking solution that provides live maps and data to improve driver safety and performance; Inseego Subscribe, a wireless subscriber management solution for carrier’s management of their government and complex enterprise customer subscriptions. The company was founded in 1996 and is based in San Diego, California.