Critical Review: RadiSys (RSYS) & IGO (IGOI)

RadiSys (NASDAQ:RSYS) and IGO (OTCMKTS:IGOI) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Volatility & Risk

RadiSys has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, IGO has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.

Earnings & Valuation

This table compares RadiSys and IGO’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RadiSys $133.77 million 0.45 -$52.60 million ($0.55) -2.78
IGO $60,000.00 103.17 -$690,000.00 N/A N/A

IGO has lower revenue, but higher earnings than RadiSys.

Profitability

This table compares RadiSys and IGO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RadiSys -29.64% -201.99% -1.17%
IGO N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings and target prices for RadiSys and IGO, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RadiSys 0 3 0 0 2.00
IGO 0 0 0 0 N/A

RadiSys currently has a consensus price target of $6.00, indicating a potential upside of 292.16%. Given RadiSys’ higher possible upside, equities research analysts clearly believe RadiSys is more favorable than IGO.

Insider & Institutional Ownership

30.7% of RadiSys shares are owned by institutional investors. 6.1% of RadiSys shares are owned by insiders. Comparatively, 4.3% of IGO shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

About RadiSys

Radisys Corporation provides telecom solutions worldwide. It operates in two segments, Software-Systems and Hardware Solutions. The company's products include MediaEngine products that provide media processing capabilities required for applications, such as voice over long-term evolution (VoLTE), voice over Wi-Fi, Web real-time communication, and multimedia conferencing, as well as media interworking; and MobilityEngine, Its MobilityEngine products portfolio provide solutions for 4G, LTE-Advance and emerging 5G standards for RAN use cases, including Centralized, Virtualized and multi access edge compute (MEC). It also offers FlowEngine, which comprises data plane traffic distribution products that classify and distribute session data flows to network processing resources. In addition, the company develops telecommunications products and applications; and DCEngine products include open-based rack-scale systems that provide transformation to cloud based compute, storage, networking fabrics, and open source hardware and software. Further, it offers legacy embedded products, including ATCA, computer-on-module express, and rack mount servers that enable the control and movement of data in 3G and LTE telecom networks and provide the hardware enablement for network elements applications; enable image processing capabilities for healthcare markets; and enable energy-efficient computing capabilities for industrial deployments. The company sells its products through direct sales, distributors, sales representatives, and system integrators in North America, Europe, the Middle East, Africa, and the Asia Pacific. Radisys Corporation was founded in 1987 and is headquartered in Hillsboro, Oregon.

About IGO

iGo, Inc., together with its subsidiaries, designs, develops, manufactures, and distributes products for mobile electronic devices in North America, Europe, and the Asia Pacific. Its products include chargers and surge protectors for laptops, as well as for other mobile electronic devices; batteries; and audio products comprising ear-buds, headphones, and portable speakers. The company also offers protection products, such as skins, cases, and screen protectors; and other mobile electronic accessory products, including portable computer stands and other miscellaneous mobile electronic accessories. It markets and sells its products to retailers, resellers, distributors, and wireless carriers, as well as directly to end users through its iGo.com and Aerial7 Websites. The company was formerly known as Mobility Electronics, Inc. and changed its name to iGo, Inc. in May 2008. iGo, Inc. was founded in 1995 and is based in Scottsdale, Arizona.

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