Analyzing Franklin Wireless (NASDAQ:FKWL) and Silicom (NASDAQ:SILC)

Silicom (NASDAQ:SILC) and Franklin Wireless (NASDAQ:FKWL) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Earnings & Valuation

This table compares Silicom and Franklin Wireless”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silicom	$58.11 million	1.41	-$13.71 million	($2.33)	-6.20
Franklin Wireless	$46.09 million	N/A	-$240,000.00	($0.01)	-453.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Silicom	-22.47%	-10.83%	-8.93%
Franklin Wireless	-0.26%	-0.31%	-0.23%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Silicom and Franklin Wireless, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silicom	1	1	0	0	1.50
Franklin Wireless	1	0	1	0	2.00

Franklin Wireless has a consensus price target of $6.00, suggesting a potential upside of 32.45%. Given Franklin Wireless’ stronger consensus rating and higher probable upside, analysts plainly believe Franklin Wireless is more favorable than Silicom.

Insider and Institutional Ownership

52.9% of Silicom shares are owned by institutional investors. Comparatively, 18.5% of Franklin Wireless shares are owned by institutional investors. 25.4% of Silicom shares are owned by company insiders. Comparatively, 28.4% of Franklin Wireless shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Silicom has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Franklin Wireless has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Summary

Franklin Wireless beats Silicom on 9 of the 13 factors compared between the two stocks.

About Silicom

Silicom Ltd., together with its subsidiaries, designs, manufactures, markets, and supports networking and data infrastructure solutions for servers, server-based systems, and communications devices. It offers server network interface cards; and smart cards, such as smart server adapters, which include redirector and switching cards, encryption and data compression hardware acceleration cards, forward error correction acceleration and offloading cards, time synchronization cards, and field programmable gate array-based cards. The company also provides virtualized and universal customer-premises equipment; and edge devices for SD-WAN, secure access service edge, Telco dedicated routers, and NFV deployments. It serves original equipment manufacturing, cloud, telco, mobile, and related service provider markets. The company operates in the United States, North America, Israel, Europe, and the Asia Pacific. Silicom Ltd. was incorporated in 1987 and is headquartered in Kfar Saba, Israel.

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.