Netgear (NTGR) versus Echelon (ELON) Head-To-Head Comparison

Echelon (NASDAQ: ELON) and Netgear (NASDAQ:NTGR) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Analyst Recommendations

How to Become a New Pot Stock Millionaire

This is a summary of current recommendations for Echelon and Netgear, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Echelon 0 0 0 0 N/A
Netgear 1 0 3 0 2.50

Netgear has a consensus price target of $64.50, indicating a potential upside of 11.50%. Given Netgear’s higher possible upside, analysts clearly believe Netgear is more favorable than Echelon.

Profitability

This table compares Echelon and Netgear’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Echelon -14.60% -19.82% -14.59%
Netgear 1.38% 9.92% 6.63%

Risk and Volatility

Echelon has a beta of -0.81, indicating that its share price is 181% less volatile than the S&P 500. Comparatively, Netgear has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500.

Institutional & Insider Ownership

24.1% of Echelon shares are held by institutional investors. Comparatively, 97.5% of Netgear shares are held by institutional investors. 10.2% of Echelon shares are held by company insiders. Comparatively, 6.2% of Netgear shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Echelon and Netgear’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Echelon $31.67 million 0.66 -$4.62 million ($1.04) -4.47
Netgear $1.41 billion 1.29 $19.43 million $0.53 109.15

Netgear has higher revenue and earnings than Echelon. Echelon is trading at a lower price-to-earnings ratio than Netgear, indicating that it is currently the more affordable of the two stocks.

Summary

Netgear beats Echelon on 12 of the 13 factors compared between the two stocks.

Echelon Company Profile

Echelon Corporation develops open-standard control networking platforms and delivers elements necessary to design, install, monitor and control communities of devices. The Company’s products enable everyday devices, such as air conditioners, outdoor lighting, appliances, electricity meters, light switches, thermostats and valves to be inter-connected and be part of the Industrial Internet of Things (IIoT) market. It operates through the IIoT segment. Its IIoT business sells products and services that form embedded control platforms, such as LONWORKS and IzoT. The Company’s IIoT business also sells products and services, which include components, control nodes and development software. The Company also offers a solution consisting of outdoor lighting controllers, segment controllers, gateways and software to end customers, such as municipalities, cities, campuses and commercial enterprises. The Company markets its products under the Echelon brand.

Netgear Company Profile

NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The company operates in three segments: Arlo, Connected Home, and Small and Medium Business. It offers smart home/connected home/broadband access products, such as remote video security systems, broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, and WiFi network adapters. The company also provides Ethernet switches, wireless controllers and access points, unified storage products, and Internet security appliances for small and medium-sized businesses. It markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers in the Americas, Europe, the Middle-East, Africa, and the Asia Pacific. NETGEAR, Inc. was founded in 1996 and is headquartered in San Jose, California.

Receive News & Ratings for Echelon Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Echelon and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply