Financial Analysis: Inseego (NASDAQ:INSG) versus Zvelo (OTCMKTS:ZVLO)

Inseego (NASDAQ:INSG) and Zvelo (OTCMKTS:ZVLO) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Volatility and Risk

Inseego has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Zvelo has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.

Insider and Institutional Ownership

34.2% of Inseego shares are owned by institutional investors. 20.9% of Inseego shares are owned by insiders. Comparatively, 5.1% of Zvelo shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Inseego and Zvelo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inseego	0	2	1	1	2.75
Zvelo	0	0	0	0	0.00

Inseego currently has a consensus price target of $13.00, suggesting a potential downside of 8.39%. Given Inseego’s stronger consensus rating and higher probable upside, analysts clearly believe Inseego is more favorable than Zvelo.

Profitability

This table compares Inseego and Zvelo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inseego	4.22%	-24.81%	7.73%
Zvelo	N/A	N/A	N/A

Earnings & Valuation

This table compares Inseego and Zvelo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inseego	$191.24 million	1.12	$4.57 million	($0.35)	-40.54
Zvelo	N/A	N/A	N/A	N/A	N/A

Inseego has higher revenue and earnings than Zvelo.

Summary

Inseego beats Zvelo on 10 of the 11 factors compared between the two stocks.

About Inseego

Inseego Corp. engages in the design and development of cloud-managed wireless wide area network (WAN) and intelligent edge solutions for businesses, consumers, and governments worldwide. The company provides 5G and 4G mobile broadband solutions, such as mobile hotspots under the MiFi brand; and 4G VoLTE products and 4G USB modems. It also offers fixed wireless access solutions, including indoor, outdoor, and industrial routers and gateways. In addition, the company provides Inseego Connect solution for device management; and 5G SD EDGE solution for secure networking enabling corporate managed mobile remote workforce. Further, it offers SaaS solutions, including telematic and asset tracking solution that provides live maps and data to improve driver safety and performance; Inseego Subscribe, a wireless subscriber management solution for carrier’s management of their government and complex enterprise customer subscriptions. The company was founded in 1996 and is based in San Diego, California.

About Zvelo

zvelo, Inc. provides Website content and contextual categorization, and malicious and botnet detection products. It offers Web filtering, brand safety, semantic targeting, traffic quality analysis, contextual targeting, and ad fraud prevention solutions for network security and mobile service providers, and subscriber analytics. The company was formerly known as eSoft, Inc. and changed its name to zvelo, Inc. in September 2010. zvelo, Inc. was founded in 1984 and is headquartered in Greenwood Village, Colorado.