Lantronix (NASDAQ:LTRX – Get Free Report) and Veea (NASDAQ:VEEA – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.
Profitability
This table compares Lantronix and Veea’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lantronix | -3.46% | -4.88% | -3.21% |
| Veea | N/A | N/A | -41.65% |
Insider and Institutional Ownership
39.4% of Lantronix shares are owned by institutional investors. Comparatively, 25.9% of Veea shares are owned by institutional investors. 2.8% of Lantronix shares are owned by insiders. Comparatively, 60.8% of Veea 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.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lantronix | 1 | 0 | 6 | 0 | 2.71 |
| Veea | 1 | 0 | 0 | 0 | 1.00 |
Lantronix currently has a consensus price target of $10.80, suggesting a potential upside of 57.66%. Given Lantronix’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Lantronix is more favorable than Veea.
Valuation and Earnings
This table compares Lantronix and Veea”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lantronix | $120.90 million | 2.66 | -$4.18 million | ($0.11) | -62.27 |
| Veea | $220,000.00 | 80.58 | -$6.66 million | ($5.20) | -1.10 |
Lantronix has higher revenue and earnings than Veea. Lantronix is trading at a lower price-to-earnings ratio than Veea, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Lantronix has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Veea has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.
Summary
Lantronix beats Veea on 9 of the 14 factors compared between the two stocks.
About Lantronix
Lantronix, Inc. provides solutions for video surveillance, infotainment systems, and intelligent substations infrastructure in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan. The company's IoT products include IoT System Solutions, which provide wired and wireless connections that enhance the value and utility of modern electronic systems and equipment through secure network connectivity, power for IoT end devices through Power over Ethernet, application hosting, protocol conversion, media conversion, secure access for distributed IoT deployments, and various other functions; Embedded IoT Modules, such as application processing delivering compute to meet customer needs for data transformation, computer vision, machine learning, augmented/virtual reality, audio/video aggregation and distribution, and custom applications; and Software and Engineering Services offers SaaS platform that enables customers to deploy, monitor, manage, and automate across their global deployments through a single platform login. It also offers telematics devices, which provides power efficient products designed to support communications across interfaces and industrial protocols for vehicle, fleet, and asset tracking and management; network switches, media converters, power over ethernet, NICS and optical SFPs, system on modules, and development kits; and services for mechanical, hardware, and software engineering for camera, audio, and artificial intelligence/machine learning development. In addition, the company provides console management, power management, and IP connected keyboard-video-mouse products that offers remote access to IT and networking infrastructure deployed in test labs, data centers, branch offices, remote sites, and server rooms; and hardware engineering, software engineering, and mechanical engineering, rapid prototyping and quality assurance engineering services. Lantronix, Inc. was incorporated in 1989 and is based in Irvine, California.
About Veea
Veea Inc. provides computing, multiaccess multiprotocol communications, edge storage, and cybersecurity solutions. The company offers multiaccess edge computing (MEC) platform that redefines connectivity and computing at the edge by integrating functions of servers, network attached storage (NAS), routers, firewalls, Wi-Fi Access Points, IoT gateways, and 4G and 5G connections; and Veea Edge Platform enables direct connections from the optical fiber, cellular, and satellite networks. It also provides VeeaHub STAX, an edge computing product integrated with wireless access, including Wi-Fi 6; VeeaHub that offers connectivity options for pro indoor smart edge applications; and VeeaHub Outdoor that integrates with wireless connectivity for smart edge applications in outdoor and industrial environments. The company also offers TROLLEE, a smart shopping cart platform; the VeeaHub toolkit; and Veea AdEdge, an advertising platform. Veea Inc. was founded in 2014 and is headquartered in New York, New York.
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