Head-To-Head Review: Infinera (NASDAQ:INFN) versus Franklin Wireless (NASDAQ:FKWL)

Infinera (NASDAQ:INFNGet Free Report) and Franklin Wireless (NASDAQ:FKWLGet Free Report) 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 profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.

Volatility & Risk

Infinera has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Franklin Wireless has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500.

Institutional & Insider Ownership

99.5% of Infinera shares are held by institutional investors. Comparatively, 9.9% of Franklin Wireless shares are held by institutional investors. 1.2% of Infinera 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, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Infinera and Franklin Wireless, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Infinera 0 2 2 1 2.80
Franklin Wireless 0 0 0 0 N/A

Infinera currently has a consensus price target of $6.72, indicating a potential upside of 28.49%. Given Infinera’s higher possible upside, equities research analysts plainly believe Infinera is more favorable than Franklin Wireless.

Valuation and Earnings

This table compares Infinera and Franklin Wireless’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Infinera $1.57 billion 0.75 -$76.04 million ($0.04) -130.75
Franklin Wireless $45.95 million 0.77 -$2.86 million ($0.16) -18.69

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

Profitability

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

Net Margins Return on Equity Return on Assets
Infinera -0.43% -3.26% -0.33%
Franklin Wireless -4.20% -4.86% -3.71%

Summary

Infinera beats Franklin Wireless on 10 of the 14 factors compared between the two stocks.

About Infinera

(Get Free Report)

Infinera Corporation provides optical transport networking equipment, software, and services worldwide. The company's product portfolio includes Infinera Groove series for modular and sled-based platforms to support a various transport network applications; Infinera 7300 series, an SDN-ready coherent optical transport system; Infinera FlexILS open optical line system that connects various Infinera and third-party terminal equipment platforms over long-distance fiber optic cable providing switching, multiplexing, amplification, and management channels; and Infinera 7090 and 7100 series for transport platforms. It also offers Infinera XTM series, a packet-optical transport platform that enables metro connectivity solutions; Infinera XTC series, a multi-terabit packet optical transport platforms that integrates digital OTN switching and optical DWDM transmission; Infinera mTera series, a network transport solution; and Infinera XT series, a platform that is designed to power cloud scale network services over metro, DCI, long-haul, and subsea networks. In addition, the company provides Infinera Cloud Xpress Family that is designed to meet the needs of internet content providers (ICPs), communication service providers, internet exchange service providers, enterprises, and other large-scale data center operators; and ICE-X Coherent Pluggable Optics. It also offers Infinera Transcend software suite; and system software and customer support services. The company serves telecommunications service providers, ICPs, cable providers, wholesale carriers, research and education institutions, large enterprises, and government entities. It markets and sells its products and related support services primarily through its direct sales force. The company was formerly known as Zepton Networks. Infinera Corporation was incorporated in 2000 and is headquartered in San Jose, California.

About Franklin Wireless

(Get Free Report)

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.

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