Airgain (NASDAQ:AIRG – Get Free Report) and Westell Technologies (OTCMKTS:WSTL – Get Free Report) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
52.8% of Airgain shares are owned by institutional investors. Comparatively, 10.9% of Westell Technologies shares are owned by institutional investors. 17.5% of Airgain shares are owned by insiders. Comparatively, 24.6% of Westell Technologies shares are owned 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.
Profitability
This table compares Airgain and Westell Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Airgain | -13.65% | -13.72% | -8.74% |
| Westell Technologies | -30.99% | -18.79% | -15.09% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Airgain | 1 | 0 | 4 | 0 | 2.60 |
| Westell Technologies | 0 | 0 | 0 | 0 | 0.00 |
Airgain presently has a consensus target price of $7.70, indicating a potential upside of 39.75%. Given Airgain’s stronger consensus rating and higher probable upside, analysts clearly believe Airgain is more favorable than Westell Technologies.
Valuation & Earnings
This table compares Airgain and Westell Technologies”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Airgain | $51.78 million | 1.39 | -$6.43 million | ($0.56) | -9.84 |
| Westell Technologies | $29.96 million | 3.21 | -$10.10 million | ($0.56) | -10.86 |
Airgain has higher revenue and earnings than Westell Technologies. Westell Technologies is trading at a lower price-to-earnings ratio than Airgain, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Airgain has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Westell Technologies has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.
Summary
Airgain beats Westell Technologies on 10 of the 13 factors compared between the two stocks.
About Airgain
Airgain, Inc. provides wireless connectivity solutions that creates and delivers embedded components, external antennas, and integrated systems worldwide. The company's products include MaxBeam embedded antennas; profile embedded antennas; profile contour embedded antennas; profile ceramic embedded antenna; ultra embedded antennas; and SmartMax embedded antennas. It offers embedded and NimbeLink embedded moderms; custom cellular solutions; cellular IoT development; cellular IoT development kits; and IoT data plans. In addition, the company provides 5G connectivity, smart repeaters, and fixed wireless access; asset tracking solutions, devices, and partners; and external antennas, fleet antennas, IoT antennas, network antennas, vehicle networking, partner solutions, and accessories. It offers its products under the Antenna Plus brand. It serves industrial, consumer, automotive fleet, enterprise, energy, medical, transportation, agriculture, services, and public safety markets. The company was formerly known as AM Group and changed its name to Airgain, Inc. in 2004. Airgain, Inc. was incorporated in 1995 and is headquartered in San Diego, California.
About Westell Technologies
Westell Technologies, Inc., through its subsidiary, Westell, Inc., designs and distributes telecommunications products to telephone companies in the United States. The company operates through three segments: In-Building Wireless (IBW), Intelligent Site Management (ISM), and Communications Network Solutions (CNS). The IBW segment offers distributed antenna system conditioners; digital repeaters; battery backup units; and system components and antennas, including couplers, duplexers, splitters, filters, and tappers for commercial and public safety in-building wireless systems. The ISM segment provides a suite of remote units, which provide machine-to-machine communications that enable operators to remotely monitor, manage, and control site infrastructure and support systems. The CNS segment provides a range of indoor and outdoor network infrastructure, such as integrated cabinets, power distribution products, copper and fiber connectivity products, and T1 network interface units. The company serves wireless and wireline service providers, multiple systems operators, Internet service providers, systems integrators, neutral host operators, and distributors through field sales organization, distributors, and partners. Westell Technologies, Inc. was founded in 1980 and is headquartered in Aurora, Illinois.
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