Contrasting Lantronix (LTRX) & XG Technology (XGTI)

Lantronix (NASDAQ: LTRX) and XG Technology (NASDAQ:XGTI) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Lantronix and XG Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lantronix 0 0 1 0 3.00
XG Technology 0 0 2 0 3.00

Lantronix currently has a consensus target price of $4.00, suggesting a potential upside of 105.13%. XG Technology has a consensus target price of $3.75, suggesting a potential upside of 131.48%. Given XG Technology’s higher possible upside, analysts plainly believe XG Technology is more favorable than Lantronix.

Earnings & Valuation

This table compares Lantronix and XG Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lantronix $44.73 million 0.78 -$270,000.00 ($0.05) -39.00
XG Technology $6.57 million 3.62 -$20.90 million N/A N/A

Lantronix has higher revenue and earnings than XG Technology.

Insider and Institutional Ownership

16.5% of Lantronix shares are owned by institutional investors. Comparatively, 2.3% of XG Technology shares are owned by institutional investors. 52.4% of Lantronix shares are owned by company insiders. Comparatively, 2.8% of XG Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Lantronix and XG Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lantronix -1.83% 2.39% 1.64%
XG Technology -20.76% -26.16% -15.69%

Volatility and Risk

Lantronix has a beta of -0.2, meaning that its share price is 120% less volatile than the S&P 500. Comparatively, XG Technology has a beta of -0.72, meaning that its share price is 172% less volatile than the S&P 500.

Summary

Lantronix beats XG Technology on 8 of the 11 factors compared between the two stocks.

About Lantronix

Lantronix, Inc. is a provider of secure data access and management solutions for Internet of things (IoT) and information technology (IT) assets. The Company organizes its products and solutions into three product lines, including IoT, IT Management and Other. Its IoT products consist of IoT Gateways and IoT Building Blocks. The Company’s IT Management product line includes console management, power management and keyboard video mouse (KVM), products that provide remote out-of-band management (OOBM) access to IT and networking infrastructure deployed in test labs, data centers and server rooms. Its Other product line includes non-focus products, such as the xPrintServer, xSenso and WiBox. Its connectivity solutions serves a range of industries, including data center, medical, security, environmental and government. The Company conducts its business in approximately three geographic regions, including the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific Japan (APJ).

About XG Technology

xG Technology, Inc. develops a portfolio of intellectual property, which is embedded in its software algorithms that offer cognitive interference mitigation and spectrum access solutions for a range of applications using commercial off the shelf devices. The Company is a provider of wireless video solutions to broadcast, law enforcement and defense markets, and private mobile broadband networks for use in a range of environments. The Company markets its technology solutions across three business units: Integrated Microwave Technologies (IMT), Vislink Communication Systems and xMax. The Company offers a range of frequency-agnostic cognitive radio solutions. It focuses on various industries across the world, such as telecommunications, cable, defense and public safety, municipal governments, critical infrastructure and markets ranging from rural to urban areas and expeditionary deployments.

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