Financial Analysis: u-blox (OTCMKTS:UBLXF) and NETGEAR (NASDAQ:NTGR)

u-blox (OTCMKTS:UBLXF) and NETGEAR (NASDAQ:NTGR) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Valuation and Earnings

This table compares u-blox and NETGEAR”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
u-blox	N/A	N/A	N/A	$3.99	21.84
NETGEAR	$740.84 million	0.78	-$104.77 million	($3.85)	-5.24

u-blox has higher earnings, but lower revenue than NETGEAR. NETGEAR is trading at a lower price-to-earnings ratio than u-blox, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for u-blox and NETGEAR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
u-blox	0	0	0	0	N/A
NETGEAR	0	1	1	0	2.50

NETGEAR has a consensus price target of $15.00, indicating a potential downside of 25.63%. Given NETGEAR’s higher possible upside, analysts clearly believe NETGEAR is more favorable than u-blox.

Profitability

This table compares u-blox and NETGEAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
u-blox	N/A	N/A	N/A
NETGEAR	-21.62%	-7.52%	-4.72%

Insider and Institutional Ownership

32.3% of u-blox shares are owned by institutional investors. Comparatively, 83.0% of NETGEAR shares are owned by institutional investors. 7.0% of NETGEAR shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

About u-blox

u-blox Holding AG develops, manufactures, and markets products and services supporting GPS/GNSS satellite positioning systems for the automotive, industrial, and consumer markets in Europe, the Middle East, Africa, the United States, and the Asia Pacific. It operates through two segments, Positioning and Wireless Products, and Wireless Services. The company develops and sells chips and modules to locate and connect devices. In addition, it offers a range of GPS/GNSS positioning products, including satellite receiver chips, chips, receiver modules, receiver boards, antennas, and smart antennas for navigation, automatic vehicle location, security, traffic control, location-based services, timing, and agriculture. u-blox Holding AG was founded in 1997 and is based in Thalwil, Switzerland.

About NETGEAR

NETGEAR, Inc. provides connectivity solutions the Americas; Europe, the Middle East, Africa; and the Asia Pacific. The company operates in two segments, Connected Home, and NETGEAR for Business. The Connected Home segment offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, digital displays, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, and Wi-Fi network adapters; and provides value-added service offerings, including security and privacy, technical support, and parental controls. The NETGEAR for Business segment provides pro AV Solutions; pro routers; enterprise grade cloud managed or standalone access points; general purpose ethernet switches; NETGEAR Insight remote management software; and NETGEAR engage controller. It markets and sells its products through wholesale distributors, traditional and online retailers, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store. The company was incorporated in 1996 and is headquartered in San Jose, California.