Contrasting Casa Systems (NASDAQ:CASA) and Airgain (NASDAQ:AIRG)

Casa Systems (NASDAQ:CASA) and Airgain (NASDAQ:AIRG) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares Casa Systems and Airgain’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Casa Systems $297.13 million 2.07 $73.01 million $0.80 9.16
Airgain $60.63 million 1.81 -$2.58 million ($0.27) -40.37

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

Risk & Volatility

Casa Systems has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Airgain has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500.

Insider & Institutional Ownership

68.2% of Casa Systems shares are owned by institutional investors. Comparatively, 47.7% of Airgain shares are owned by institutional investors. 64.1% of Casa Systems shares are owned by company insiders. Comparatively, 8.4% of Airgain shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Casa Systems and Airgain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Casa Systems 8.71% 32.65% 5.23%
Airgain 4.38% 5.94% 5.10%

Analyst Recommendations

This is a breakdown of current ratings for Casa Systems and Airgain, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Casa Systems 1 5 1 0 2.00
Airgain 0 0 3 0 3.00

Casa Systems currently has a consensus target price of $11.00, indicating a potential upside of 50.07%. Airgain has a consensus target price of $17.67, indicating a potential upside of 62.08%. Given Airgain’s stronger consensus rating and higher possible upside, analysts clearly believe Airgain is more favorable than Casa Systems.

Summary

Casa Systems beats Airgain on 10 of the 14 factors compared between the two stocks.

Casa Systems Company Profile

Casa Systems, Inc. provides software-centric broadband products in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers solutions that allow cable service providers to deliver voice, video, and data services over a single platform at multi-gigabit speeds. It also provides solutions for next-generation centralized, distributed, and virtualized architectures for cable broadband, fixed-line broadband, and wireless networks. Casa Systems, Inc. was founded in 2003 and is headquartered in Andover, Massachusetts.

Airgain Company Profile

Airgain, Inc. designs, develops, and engineers antenna products for original equipment and design manufacturers, chipset vendors, service providers, and value added resellers and distributors worldwide. Its products include MaxBeam embedded antennas; profile embedded antennas; profile contour embedded antennas; ultra-embedded antennas; OmniMax high performance external antennas; MaxBeam carrier class antennas; and SmartMax embedded antennas, as well as automotive, fleet, public safety, and M2M antennas. The company provides embedded antenna technologies to enable high performance wireless networking across a range of devices and markets, including consumer, enterprise, and automotive. The company was formerly known as AM Group and changed its name to Airgain, Inc. in 2004. Airgain, Inc. was founded in 1995 and is headquartered in San Diego, California.

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