Head-To-Head Survey: ClearOne (NASDAQ:CLRO) versus Franklin Wireless (NASDAQ:FKWL)

ClearOne (NASDAQ:CLRO) and Franklin Wireless (NASDAQ:FKWL) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

ClearOne has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Franklin Wireless has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Profitability

This table compares ClearOne and Franklin Wireless’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ClearOne	112.14%	-11.13%	-9.75%
Franklin Wireless	-4.20%	-4.86%	-3.71%

Valuation and Earnings

This table compares ClearOne and Franklin Wireless’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ClearOne	$25.20 million	0.73	$20.56 million	$0.84	0.92
Franklin Wireless	$47.50 million	0.76	-$2.86 million	($0.16)	-19.13

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ClearOne and Franklin Wireless, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ClearOne	0	0	0	0	N/A
Franklin Wireless	0	0	0	0	N/A

Insider & Institutional Ownership

7.3% of ClearOne shares are held by institutional investors. Comparatively, 9.9% of Franklin Wireless shares are held by institutional investors. 0.9% of ClearOne shares are held by company insiders. Comparatively, 29.6% of Franklin Wireless shares are held by company 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.

Summary

Franklin Wireless beats ClearOne on 6 of the 11 factors compared between the two stocks.

About ClearOne

ClearOne, Inc., together with its subsidiaries, designs, develops, and sells conferencing, collaboration, and network streaming solutions for voice and visual communications in the United States and internationally. The company offers a range of audio conferencing products, including professional audio conferencing and sound-reinforcement products for use in enterprise, healthcare, education and distance learning, government, legal, and finance organizations; mid-tier premium conferencing products for smaller rooms, and small and medium businesses, which interface with video and Web conferencing systems; USB-based personal and group speakerphones that could be used with PCs, laptops, tablets, smartphones, and other portable devices; and traditional tabletop conferencing phones used in conference rooms and offices. It also provides professional microphones consisting of beamforming microphones, ceiling microphones, and wireless microphones. In addition, the company offers video products, such as video conferencing and collaboration solutions; professional-grade cameras; and AV networking, which deliver the IP A/V experience by streaming time sensitive high definition audio and video, and control over TCP/IP networks. It sells its commercial products to a network of independent professional audiovisual, information technology, and telecommunications distributors, as well as systems integrators, dealers, value-added resellers, and end-users. The company was incorporated in 1983 and is headquartered in Salt Lake City, Utah.

About Franklin Wireless

Franklin Wireless Corp. provides integrated wireless solutions. The company's products include 5G/4G wireless broadband products, such as wi-fi mobile hotspot, fixed wireless routers, and enterprise gateway CPE; and IoT tracking and connected devices, including smart IoT tracking device, connected car, and home phone connect. It also offers IOT server platform and application, which comprises Pintrac, a cloud based telecom grade server platform; Pintrac Mobile Device Management, an LTE hotspot; Pintrac Pet, a pet tracking application; Pintrac Auto that tracks, locates, and manages vehicles for consumers and businesses; and JEXtream, a cloud based telecom grade server platform for 5G devices and routers that enables enhanced remote management of device functionality. The company directly markets and sells its products to wireless operators, as well as indirectly through strategic partners and distributors located primarily in the North America, the Caribbean and South America, and Asia. Franklin Wireless Corp. was founded in 1981 and is headquartered in San Diego, California.