Head to Head Review: xG Technology (XGTI) & 5Barz International (BARZ)

xG Technology (NASDAQ:XGTI) and 5Barz International (OTCMKTS:BARZ) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Insider & Institutional Ownership

2.3% of xG Technology shares are held by institutional investors. Comparatively, 0.1% of 5Barz International shares are held by institutional investors. 9.1% of xG Technology shares are held by company insiders. Comparatively, 20.7% of 5Barz International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

xG Technology has a beta of -0.25, suggesting that its share price is 125% less volatile than the S&P 500. Comparatively, 5Barz International has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Profitability

This table compares xG Technology and 5Barz International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
xG Technology -59.22% -117.24% -47.50%
5Barz International N/A N/A N/A

Earnings & Valuation

This table compares xG Technology and 5Barz International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
xG Technology $47.82 million 0.12 -$10.54 million N/A N/A
5Barz International N/A N/A -$10.39 million N/A N/A

5Barz International has lower revenue, but higher earnings than xG Technology.

Analyst Recommendations

This is a summary of recent recommendations for xG Technology and 5Barz International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
xG Technology 0 1 0 0 2.00
5Barz International 0 0 0 0 N/A

xG Technology currently has a consensus price target of $4.00, suggesting a potential upside of 1,189.91%. Given xG Technology’s higher probable upside, equities research analysts plainly believe xG Technology is more favorable than 5Barz International.

Summary

5Barz International beats xG Technology on 6 of the 9 factors compared between the two stocks.

About xG Technology

xG Technology, Inc. designs, develops, and delivers advanced wireless communications solutions in North America, Europe, South America, Asia, and rest of world. Its business lines include the brands of Integrated Microwave Technologies LLC (IMT) and Vislink Communication Systems (VCS). IMT develops, manufactures, and sells microwave communications equipment utilizing COFDM (Coded Orthogonal Frequency Division Multiplexing) technology, a transmission technique that combines encoding technology with OFDM (Orthogonal Frequency Division Multiplexing) modulation to provide the low latency and high image clarity required for real-time live broadcasting video transmissions. The company develops integrated solutions that deliver video footage captured from aerial and ground-based sources to fixed and mobile receiver locations. VCS designs and manufactures products encompassing microwave radio components, satellite communication, cellular and wireless camera systems, and associated amplifier items for broadcast and media, law enforcement, public safety, and surveillance markets. It provides broadcast communication links for the collection of live news and sports and entertainment events for national broadcasters, multi-channel broadcasters, network owners and station groups, sports and live broadcasters, and hosted service providers; and secure video communications and mission-critical solutions for law enforcement, defense, and homeland security applications. The company markets its products through sales channels, including direct-to-end customer sales, network group sales, reseller/integrators, and original equipment manufacturers. xG Technology, Inc. was founded in 2002 and is headquartered in Sarasota, Florida.

About 5Barz International

5BARz International, Inc. designs, manufactures, and sells a line of cellular network infrastructure devices for use in the office, home, and mobile market places in India, Latin America, the United States, and Western Europe. The company's 5BARz brand products strengthen weak cellular signals to deliver high quality signals for voice, data, and video reception on cell phones and other cellular equipped devices. It offers 5BARz Road Warrior, a plug and play device designed for users on the go; and 5BARz Network Extender that provides increased voice experience and data throughput covering an area of some 4,000 square feet used in the home or office. The company was formerly known as Bio-Stuff Inc. and changed its name to 5Barz International, Inc. in December 2010. 5BARz International, Inc. was founded in 2008 and is headquartered in San Diego, California.

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