GoPro (NASDAQ:GPRO) & Andrea Electronics (OTCMKTS:ANDR) Critical Analysis

GoPro (NASDAQ:GPRO) and Andrea Electronics (OTCMKTS:ANDR) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Profitability

This table compares GoPro and Andrea Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GoPro	-14.53%	-49.10%	-12.67%
Andrea Electronics	N/A	N/A	N/A

Volatility and Risk

GoPro has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Andrea Electronics has a beta of -0.24, suggesting that its share price is 124% less volatile than the S&P 500.

Valuation and Earnings

This table compares GoPro and Andrea Electronics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoPro	$801.47 million	0.31	-$432.31 million	($0.69)	-2.26
Andrea Electronics	$1.96 million	N/A	-$290,000.00	N/A	N/A

Andrea Electronics has lower revenue, but higher earnings than GoPro.

Analyst Ratings

This is a summary of current recommendations and price targets for GoPro and Andrea Electronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoPro	1	1	0	0	1.50
Andrea Electronics	0	0	0	0	0.00

GoPro presently has a consensus target price of $0.75, suggesting a potential downside of 51.92%. Given Andrea Electronics’ higher probable upside, analysts clearly believe Andrea Electronics is more favorable than GoPro.

Institutional & Insider Ownership

70.1% of GoPro shares are held by institutional investors. Comparatively, 0.0% of Andrea Electronics shares are held by institutional investors. 18.4% of GoPro shares are held by insiders. Comparatively, 13.2% of Andrea Electronics shares are held by 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.

About GoPro

GoPro, Inc. develops and sells cameras, mountable and wearable accessories, and subscription services and software in the Americas, Europe, the Middle East, Africa, the Asia and Pacific region, and internationally. The company provides cloud connected HERO12 Black, HERO11 Black, HERO11 Black Mini, HERO10 Black, HERO10 Black Bones, and HERO9 Black waterproof cameras; MAX, a 360-degree waterproof camera; Premium and Premium+ subscription services, which include full access to the Quik app, cloud storage supporting source video and photo quality, camera replacement, and damage protection; Quik subscription that offers access to editing tools, which allows users to edit photos, videos, and create cinematic stories; and Quik desktop and mobile apps that enable users to get their favorite photos and videos with footage from any phone or camera. It also offers mounts and accessories comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and tripod mounts that enable consumers to wear the mount on their bodies, such as wrist housings, magnetic swivel clips, chest harnesses, and head straps; media, display, and light mods; spare batteries, dive filters, and charging accessories and cables; and lifestyle gear, such as bags, backpacks, cases, t-shirts, hats, and other soft goods. In addition, the company provides mobile, desktop, and web applications that provides media workflow for archiving, editing, multi-clip story creation, and sharing content on the fly. GoPro, Inc. sells its products through retailers and wholesale distributors, as well as through its GoPro.com website. The company was formerly known as Woodman Labs, Inc. and changed its name to GoPro, Inc. in February 2014. GoPro, Inc. was founded in 2002 and is headquartered in San Mateo, California.

About Andrea Electronics

Andrea Electronics Corporation, together with its subsidiaries, designs, develops, and manufactures digital microphone products and noise reduction software that facilitate natural language and human/machine interfaces for the computer and business enterprise markets in the United States and internationally. The company develops digital signal processing (DSP) products and technologies for the voice, speech, and natural language interface markets. Its DSP microphone and audio noise reduction software products include DA-350 auto array microphone for far-field voice intelligibility and accuracy of automatic speech recognition in automotive and mass transit environments; DA-250 OEM array microphone, a small compact stereo array microphone and DSP circuit board platform; USB-SA array microphone, which offers a USB digital audio adapter to bypass a computer’s standard integrated sound system; AudioCommander, a PC audio control panel; an audio software for Mac that offers an intuitive graphic user interface to control stereo array microphone beam forming and noise cancellation on the input and EQ filters; PureAudio Live Recorder, a digital voice and audio recording application; and PureAudio Plus Recorder, which provides bookmarks for navigation of recordings. Its products are used in various applications, including mass transit and automotive communication systems, automated teller machines, information kiosks, quick service restaurant automated ordering, Internet of Things, smart building entrance intercom systems, audio and video recordings, and video surveillance. The company markets and sells its products through sales representatives to computer and kiosk OEMs and industrial system integrators. Andrea Electronics Corporation was incorporated in 1934 and is headquartered in Bohemia, New York.