Contrasting SBA Communications Corporation (NASDAQ:SBAC) & Inseego Corp. (INSG)

Inseego Corp. (NASDAQ: INSG) and SBA Communications Corporation (NASDAQ:SBAC) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Inseego Corp. and SBA Communications Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inseego Corp. 0 1 2 0 2.67
SBA Communications Corporation 0 3 12 0 2.80

Inseego Corp. currently has a consensus price target of $2.17, indicating a potential upside of 80.56%. SBA Communications Corporation has a consensus price target of $140.31, indicating a potential upside of 1.47%. Given Inseego Corp.’s higher possible upside, equities analysts clearly believe Inseego Corp. is more favorable than SBA Communications Corporation.

Risk & Volatility

Inseego Corp. has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, SBA Communications Corporation has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Insider and Institutional Ownership

12.4% of Inseego Corp. shares are held by institutional investors. Comparatively, 96.5% of SBA Communications Corporation shares are held by institutional investors. 4.1% of Inseego Corp. shares are held by insiders. Comparatively, 2.1% of SBA Communications Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Inseego Corp. and SBA Communications Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inseego Corp. -32.34% -204.22% -16.74%
SBA Communications Corporation 2.19% -2.64% 0.67%

Earnings & Valuation

This table compares Inseego Corp. and SBA Communications Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Inseego Corp. $232.00 million 0.29 -$8.41 million ($1.33) -0.90
SBA Communications Corporation $1.68 billion 9.96 $1.10 billion $0.31 446.05

SBA Communications Corporation has higher revenue and earnings than Inseego Corp.. Inseego Corp. is trading at a lower price-to-earnings ratio than SBA Communications Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

SBA Communications Corporation beats Inseego Corp. on 11 of the 13 factors compared between the two stocks.

About Inseego Corp.

Novatel Wireless, Inc. is a provider of intelligent wireless solutions for the mobile communications market. The Company’s range of products includes intelligent mobile hotspots, universal serial bus (USB) modems, embedded modules, integrated asset-management and mobile tracking machine-to-machine (M2M) devices, communications and applications software and cloud services. It operates in the wireless communications industry in two product categories: M2M Products and Solutions, and Mobile Computing Solutions. M2M Products and Solutions includes its M2M embedded modules, integrated M2M communications devices, Ctrack fleet management platform and its service delivery platforms, Crossroads, DMS, the N4A DM and N4A CMS that provide device management and service enablement. Mobile Computing Solutions includes its MiFi brand of intelligent mobile hotspot devices, USB modems and embedded modules that enable Internet access and data transmission and services via cellular wireless networks.

About SBA Communications Corporation

SBA Communications Corporation is an independent owner and operator of wireless communications tower structures, rooftops and other structures that support antennas used for wireless communications. The Company’s operating segments include site leasing and site development. The site leasing business includes segments, domestic site leasing and international site leasing. The Company’s primary business line is its site leasing business. In its site leasing business, the Company leases antenna space to wireless service providers on towers that it owns or operates, and manages rooftop and tower sites for property owners under various contractual arrangements. The Company owns approximately 25,460 towers. It also manages or leases approximately 5,500 actual or potential towers. The Company’s other business line is its site development business, through which it assists wireless service providers in developing and maintaining their own wireless service networks.

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