Analyzing Inseego (NASDAQ:INSG) and Constellation Software (OTCMKTS:CNSWF)

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

Analyst Recommendations

This is a summary of current ratings and target prices for Constellation Software and Inseego, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Software	0	3	4	1	2.75
Inseego	1	2	2	1	2.50

Inseego has a consensus target price of $14.75, suggesting a potential downside of 10.82%. Given Inseego’s higher possible upside, analysts plainly believe Inseego is more favorable than Constellation Software.

Earnings and Valuation

This table compares Constellation Software and Inseego”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Constellation Software	$10.07 billion	N/A	$730.00 million	$29.28	95.24
Inseego	$191.24 million	1.30	$4.57 million	($0.35)	-47.26

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

Risk and Volatility

Constellation Software has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Inseego has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Constellation Software	5.77%	53.92%	14.01%
Inseego	4.22%	-24.81%	7.73%

Insider & Institutional Ownership

34.2% of Inseego shares are held by institutional investors. 20.9% of Inseego shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Constellation Software beats Inseego on 9 of the 13 factors compared between the two stocks.

About Constellation Software

Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets. The company is also involved in the software licensing; and sale of third-party hardware. In addition, it offers professional, and maintenance and other recurring services. Constellation Software Inc. was incorporated in 1995 and is headquartered in Toronto, Canada.

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.