Meru Networks (NASDAQ: MERU) and CalAmp (NASDAQ:CAMP) are both small-cap telecommunications services companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.
Volatility and Risk
Meru Networks has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, CalAmp has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.
This is a breakdown of current ratings for Meru Networks and CalAmp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CalAmp has a consensus target price of $26.25, indicating a potential upside of 6.15%. Given CalAmp’s higher probable upside, analysts clearly believe CalAmp is more favorable than Meru Networks.
Valuation & Earnings
This table compares Meru Networks and CalAmp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CalAmp||$351.10 million||2.51||-$7.90 million||$0.49||50.47|
Meru Networks has higher earnings, but lower revenue than CalAmp. Meru Networks is trading at a lower price-to-earnings ratio than CalAmp, indicating that it is currently the more affordable of the two stocks.
This table compares Meru Networks and CalAmp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
71.3% of CalAmp shares are held by institutional investors. 5.3% of CalAmp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
CalAmp beats Meru Networks on 11 of the 11 factors compared between the two stocks.
Meru Networks Company Profile
Meru Networks, Inc. (Meru) develops and markets a virtualized Wireless Local Area Network (WLAN) solution. The Company’s solution is built around its System Director Operating System, which runs on its controllers and access points. The Company offers additional products designed to deliver network management, diagnostics and security. The Company also offers support services related to its products, professional services, and training. Its products and services are sold through value added resellers, and distributors, as well as its sales force. Its System Director Operating System forms the core of its virtualized WLAN solution. It provides a family of controllers that run its System Director Operating System and work in conjunction with its access points. Its Wireless Fidelity (Wi-Fi) certified access points provide network connectivity for wireless devices. Its bring-your-own-device (BYOD) and policy management solutions are designed to automate secure guest access.
CalAmp Company Profile
CalAmp Corp. (CalAmp) is a provider of wireless communications solutions for a range of applications to customers globally. The Company operates through two business segments: Wireless DataCom and Satellite. The Company’s Wireless DataCom segment offers solutions for mobile resource management (MRM) applications, the machine-to-machine (M2M) communications space and other markets that require connectivity anytime and anywhere. The Company’s MRM and M2M solutions collect, monitor and report data and intelligence from remote and mobile assets. The Company delivers products, software services and solutions for energy, government, transportation and automotive vertical markets. The Company’s Satellite segment develops, manufactures and sells direct-broadcast satellite (DBS) outdoor customer premise equipment and whole home video networking devices enabling the delivery of digital and high definition satellite television services. Its satellite products are sold primarily to EchoStar.
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