Financial Survey: SEA (NYSE:SE) versus Inseego (NASDAQ:INSG)

SEA (NYSE:SE) and Inseego (NASDAQ:INSG) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Institutional & Insider Ownership

59.5% of SEA shares are owned by institutional investors. Comparatively, 34.2% of Inseego shares are owned by institutional investors. 0.2% of SEA shares are owned by company insiders. Comparatively, 20.9% of Inseego shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SEA	6.23%	13.66%	5.16%
Inseego	4.22%	-24.81%	7.73%

Analyst Recommendations

This is a breakdown of current ratings and target prices for SEA and Inseego, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEA	0	5	10	2	2.82
Inseego	1	2	1	2	2.67

SEA presently has a consensus target price of $183.66, suggesting a potential upside of 15.13%. Inseego has a consensus target price of $16.25, suggesting a potential upside of 3.11%. Given SEA’s stronger consensus rating and higher possible upside, research analysts plainly believe SEA is more favorable than Inseego.

Valuation & Earnings

This table compares SEA and Inseego”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEA	$16.82 billion	5.59	$444.32 million	$1.93	82.65
Inseego	$191.24 million	1.25	$4.57 million	($0.35)	-45.03

SEA has higher revenue and earnings than Inseego. Inseego is trading at a lower price-to-earnings ratio than SEA, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

SEA has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, Inseego has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Summary

SEA beats Inseego on 12 of the 14 factors compared between the two stocks.

About SEA

Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.

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.