Financial Comparison: xG Technology (XGTI) and ADVA Optical Networking (ADVOF)

xG Technology (NASDAQ: XGTI) and ADVA Optical Networking (OTCMKTS:ADVOF) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for xG Technology and ADVA Optical Networking, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
xG Technology 0 1 0 0 2.00
ADVA Optical Networking 0 0 0 0 N/A

xG Technology currently has a consensus price target of $4.00, indicating a potential upside of 601.14%. Given xG Technology’s higher possible upside, research analysts clearly believe xG Technology is more favorable than ADVA Optical Networking.

Profitability

This table compares xG Technology and ADVA Optical Networking’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
xG Technology -46.88% -61.31% -33.35%
ADVA Optical Networking -2.67% 0.44% 0.21%

Volatility & Risk

xG Technology has a beta of -0.47, meaning that its stock price is 147% less volatile than the S&P 500. Comparatively, ADVA Optical Networking has a beta of 2.89, meaning that its stock price is 189% more volatile than the S&P 500.

Earnings & Valuation

This table compares xG Technology and ADVA Optical Networking’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
xG Technology $47.82 million 0.20 -$10.54 million N/A N/A
ADVA Optical Networking $581.16 million 0.63 -$4.77 million $0.08 92.50

ADVA Optical Networking has higher revenue and earnings than xG Technology.

Insider and Institutional Ownership

3.1% of xG Technology shares are owned by institutional investors. 9.1% of xG Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

ADVA Optical Networking beats xG Technology on 7 of the 10 factors compared between the two stocks.

About xG Technology

xG Technology, Inc. designs, develops, and delivers advanced wireless communications solutions in North America, Europe, South America, Asia, and rest of world. The company offers electronic news gathering, wireless camera, portable microwave, and fixed point to point systems for the broadcasting market; wireless camera systems and mobile radios for the sports and entertainment market; and wireless video solutions, including manned and unmanned aerial and ground systems, mobile and handheld receive systems, and transmitters for the government/surveillance market. It provides HCAM, a 4K Ultra HD-capable on-camera wireless video transmitter; HDX-1100, an aircraft downlink transmitter; Newsnet, a ENG operations that brings studio workflows directly to the field; ViewBack, a lightweight, low power and latency, and dual channel receiver-decoder that enables production, editing, and collaboration between camera operators and studio teams; and SatWare, an embedded computing and routing system designed for broadcast equipment in the field. In addition, the company offers mobile voice over Internet protocol and broadband data system, which utilizes an end-to-end Internet protocol system architecture; xMax now transportable broadband wireless system; CN5100 mobile hotspots; CN3100 vehicle modems designed to be installed inside or outside vehicles; CN3200 dual-band routing modem; CN1100 wireless access point; and CN7000 mobile control center. It markets its products through sales channels, including direct-to-end customer sales, network group sales, reseller/integrators, and original equipment manufacturers under the Integrated Microwave Technologies LLC, Vislink Communication Systems, and xMax brand names. xG Technology, Inc. was founded in 2002 and is headquartered in Sarasota, Florida.

About ADVA Optical Networking

ADVA Optical Networking SE develops, manufactures, and sells optical and Ethernet-based networking solutions to deliver data, storage, voice, and video services worldwide. It offers scalable optical transport solutions, such as FSP 3000 AgileConnect, FSP 3000 CloudConnect, and FSP 3000 AccessConnect; packet edge and aggregation products, including carrier Ethernet and programmable demarcation, edge aggregation, and edge computing products; and network virtualization products comprising ensemble connectors, controllers, and orchestrators. The company also provides timing and synchronization products; network infrastructure assurance products; and automated network management products, such as FSP service manager, FSP network manager, FSP network hypervisor, ensemble portal, and Pro-Vision products that offer a unified platform for network operations. In addition, it provides professional services to plan, operate, and maintain the networks. The company sells its products to telecommunications service providers, private companies, universities, and government agencies directly, as well as through a network of distribution partners. The company was founded in 1994 and is headquartered in Munich, Germany.

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