MER Telemanagement Solutions (MTSL) vs. NetGear (NTGR) Critical Analysis

MER Telemanagement Solutions (NASDAQ:MTSL) and NetGear (NASDAQ:NTGR) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

0.8% of MER Telemanagement Solutions shares are owned by institutional investors. Comparatively, 99.8% of NetGear shares are owned by institutional investors. 59.1% of MER Telemanagement Solutions shares are owned by company insiders. Comparatively, 5.1% of NetGear shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for MER Telemanagement Solutions and NetGear, as reported by MarketBeat.

NetGear has a consensus price target of $71.00, indicating a potential upside of 31.21%. Given NetGear’s higher possible upside, analysts clearly believe NetGear is more favorable than MER Telemanagement Solutions.

Profitability

This table compares MER Telemanagement Solutions and NetGear’s net margins, return on equity and return on assets.

Volatility & Risk

MER Telemanagement Solutions has a beta of 3.03, meaning that its stock price is 203% more volatile than the S&P 500. Comparatively, NetGear has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500.

Earnings & Valuation

This table compares MER Telemanagement Solutions and NetGear’s gross revenue, earnings per share and valuation.

NetGear has higher revenue and earnings than MER Telemanagement Solutions.

Summary

NetGear beats MER Telemanagement Solutions on 8 of the 11 factors compared between the two stocks.

About MER Telemanagement Solutions

MER Telemanagement Solutions Ltd. provides solutions for telecommunications expense management (TEM), enterprise mobility management, and online and mobile video advertising worldwide. The company operates in three segments: Enterprise, Service Providers, and Video Advertising. It offers TEM suite software platform that helps organizations to reduce operational expenses, enhance productivity, and optimize networks and services associated with communications networks and information technology (IT). The company also provides TEM services, such as Map-to-Wins, a strategic consulting approach for TEM solution; and consulting services, including invoice and inventory audit and recovery, contract negotiations and strategic sourcing, discovery and road mapping, process diagnosis and solution design, and wireless optimization services, as well as creation and implementation of IT governance, risk, and compliance policies. In addition, the company offers converged billing solutions that include applications for charging and invoicing customers, interconnect billing, and partner revenue management services for wireless providers, voice over Internet protocol, Internet protocol television, mobile virtual network operators, and content service providers. Further, it provides cloud and managed services; and digital video advertising solutions for large and small brand advertisers, advertising agencies, and other businesses. The company sells its solutions through original equipment manufacturers, distribution channels, and direct sales force. MER Telemanagement Solutions Ltd. was founded in 1995 and is headquartered in Ra’anana, Israel.

About NetGear

NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The company operates in three segments: Arlo, Connected Home, and Small and Medium Business. It offers smart home/connected home/broadband access products, such as remote video security systems, broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, and WiFi network adapters. The company also provides Ethernet switches, wireless controllers and access points, unified storage products, and Internet security appliances for small and medium-sized businesses. It markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers in the Americas, Europe, the Middle-East, Africa, and the Asia Pacific. NETGEAR, Inc. was founded in 1996 and is headquartered in San Jose, California.

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