Head to Head Analysis: Airgain (NASDAQ:AIRG) vs. China Techfaith Wireless Communication Technology (OTCMKTS:CNTFY)

Airgain (NASDAQ:AIRG) and China Techfaith Wireless Communication Technology (OTCMKTS:CNTFY) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares Airgain and China Techfaith Wireless Communication Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airgain	-15.43%	-17.59%	-13.24%
China Techfaith Wireless Communication Technology	N/A	N/A	N/A

Volatility & Risk

Airgain has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, China Techfaith Wireless Communication Technology has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.

Institutional & Insider Ownership

53.2% of Airgain shares are owned by institutional investors. 15.3% of Airgain shares are owned by insiders. Comparatively, 33.3% of China Techfaith Wireless Communication Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Airgain and China Techfaith Wireless Communication Technology’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airgain	$65.86 million	0.40	-$8.66 million	($0.98)	-2.57
China Techfaith Wireless Communication Technology	N/A	N/A	N/A	N/A	N/A

China Techfaith Wireless Communication Technology has lower revenue, but higher earnings than Airgain.

Analyst Recommendations

This is a summary of recent ratings for Airgain and China Techfaith Wireless Communication Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airgain	0	1	1	0	2.50
China Techfaith Wireless Communication Technology	0	0	0	0	N/A

Airgain currently has a consensus target price of $6.50, suggesting a potential upside of 157.94%. Given Airgain’s higher probable upside, research analysts clearly believe Airgain is more favorable than China Techfaith Wireless Communication Technology.

Summary

China Techfaith Wireless Communication Technology beats Airgain on 5 of the 9 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; ultra-embedded antennas; SmartMax embedded antennas; and MaxBeam carrier class antennas, as well as automotive, fleet, public safety, and machine-to-machine antennas under the Antenna Plus brand. 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 China Techfaith Wireless Communication Technology

China TechFaith Wireless Communication Technology Limited engages in the original design and development of specialized mobile handsets for consumers and enterprises in the People's Republic of China and internationally. It operates through Mobile Phone Business and Real Estate segments. The company offers handset design services through outsourcing of EMS providers who engage in assembly and manufacturing operations; and offer testing services of the assembled printed circuit boards, systems, and subsystems for Chinese mobile handset brand owners and international mobile handset brand owners. It also provides feature phones, smart phones, ruggedized phones, wireless modules, smart pads, and wireless software and applications, as well as other electronic components, such as industrial wireless devices. In addition, the company sells mobile handset products under the Tecface, 17FOX, and MOBIFOX brands. Further, it owns, develops, operates, and manages commercial real estate properties. The company was founded in 2002 and is headquartered in Beijing, the People's Republic of China.