Head-To-Head Analysis: AAP (OTCMKTS:AAPJ) versus Airgain (NASDAQ:AIRG)

Airgain (NASDAQ:AIRG) and AAP (OTCMKTS:AAPJ) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Risk and Volatility

Airgain has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, AAP has a beta of 3.63, suggesting that its stock price is 263% more volatile than the S&P 500.

Earnings and Valuation

This table compares Airgain and AAP”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airgain	$60.60 million	0.85	-$8.69 million	($0.58)	-7.47
AAP	N/A	N/A	N/A	N/A	N/A

AAP has lower revenue, but higher earnings than Airgain.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Airgain	-11.86%	-18.58%	-12.35%
AAP	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Airgain and AAP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airgain	0	0	3	0	3.00
AAP	0	0	0	0	0.00

Airgain currently has a consensus target price of $8.50, indicating a potential upside of 96.30%. Given Airgain’s stronger consensus rating and higher possible upside, equities analysts clearly believe Airgain is more favorable than AAP.

Institutional & Insider Ownership

52.8% of Airgain shares are held by institutional investors. 17.8% of Airgain shares are held by insiders. Comparatively, 4.5% of AAP shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Airgain beats AAP on 6 of the 10 factors compared between the two stocks.

About Airgain

Airgain, Inc. provides wireless connectivity solutions that creates and delivers embedded components, external antennas, and integrated systems worldwide. The company's products include MaxBeam embedded antennas; profile embedded antennas; profile contour embedded antennas; profile ceramic embedded antenna; ultra embedded antennas; and SmartMax embedded antennas. It offers embedded and NimbeLink embedded moderms; custom cellular solutions; cellular IoT development; cellular IoT development kits; and IoT data plans. In addition, the company provides 5G connectivity, smart repeaters, and fixed wireless access; asset tracking solutions, devices, and partners; and external antennas, fleet antennas, IoT antennas, network antennas, vehicle networking, partner solutions, and accessories. It offers its products under the Antenna Plus brand. It serves industrial, consumer, automotive fleet, enterprise, energy, medical, transportation, agriculture, services, and public safety markets. The company was formerly known as AM Group and changed its name to Airgain, Inc. in 2004. Airgain, Inc. was incorporated in 1995 and is headquartered in San Diego, California.

About AAP

AAP, Inc. engages in the debt collection, infrastructure construction, business, and real estate development business. The company was formerly known as Borneo Energy USA, Inc. and changed its name to AAP, Inc. in September 2011. AAP, Inc. was founded in 1993 and is based in Cheyenne, Wyoming.