USA Technologies (NASDAQ: USAT) and Echelon (NASDAQ:ELON) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.
Insider & Institutional Ownership
56.1% of USA Technologies shares are owned by institutional investors. Comparatively, 24.1% of Echelon shares are owned by institutional investors. 4.4% of USA Technologies shares are owned by company insiders. Comparatively, 9.1% of Echelon shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares USA Technologies and Echelon’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|USA Technologies||$104.09 million||4.64||-$1.85 million||($0.02)||-450.00|
|Echelon||$31.67 million||0.66||-$4.62 million||($1.04)||-4.41|
USA Technologies has higher revenue and earnings than Echelon. USA Technologies is trading at a lower price-to-earnings ratio than Echelon, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for USA Technologies and Echelon, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
USA Technologies currently has a consensus target price of $14.00, suggesting a potential upside of 55.56%. Given USA Technologies’ higher probable upside, equities research analysts clearly believe USA Technologies is more favorable than Echelon.
This table compares USA Technologies and Echelon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
USA Technologies has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Echelon has a beta of -0.81, indicating that its share price is 181% less volatile than the S&P 500.
USA Technologies beats Echelon on 11 of the 12 factors compared between the two stocks.
About USA Technologies
USA Technologies, Inc. provides wireless networking, cashless transactions, asset monitoring, and other value-added services in the United States and internationally. It designs and markets systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (M2M) services. The company's ePort Connect solution offers various POS options, card processing, wireless connectivity, customer/consumer, online sales reporting, M2M telemetry and DEX data transfer, over-the-air update capabilities, deployment planning, and value-added services, as well as planning, project management, installation support, marketing, and performance evaluation services. The company's products include ePort, a device that is used in self-service, unattended markets, such as vending, amusement and arcade, and various other kiosk applications, as well as facilitates cashless payments by capturing payment information and transmitting it to its network for authorization with the payment system. It primarily serves small ticket, and beverage and food vending industries, as well as unattended point of sale markets, including amusement, commercial laundry, kiosk, and other. USA Technologies, Inc. was founded in 1992 and is headquartered in Malvern, Pennsylvania.
Echelon Corporation develops open-standard control networking platforms and delivers elements necessary to design, install, monitor and control communities of devices. The Company’s products enable everyday devices, such as air conditioners, outdoor lighting, appliances, electricity meters, light switches, thermostats and valves to be inter-connected and be part of the Industrial Internet of Things (IIoT) market. It operates through the IIoT segment. Its IIoT business sells products and services that form embedded control platforms, such as LONWORKS and IzoT. The Company’s IIoT business also sells products and services, which include components, control nodes and development software. The Company also offers a solution consisting of outdoor lighting controllers, segment controllers, gateways and software to end customers, such as municipalities, cities, campuses and commercial enterprises. The Company markets its products under the Echelon brand.
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