Reviewing Veea (NASDAQ:VEEA) & NETGEAR (NASDAQ:NTGR)

by · The Markets Daily

NETGEAR (NASDAQ:NTGR – Get Free Report) and Veea (NASDAQ:VEEA – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Volatility & Risk

NETGEAR has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Veea has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.

Valuation and Earnings

This table compares NETGEAR and Veea”s top-line revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
NETGEAR$699.62 million0.86-$17.92 million($0.93)-23.71
Veea$491,488.0026.65-$6.66 million($5.20)-0.81

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for NETGEAR and Veea, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
NETGEAR11202.25
Veea10001.00

NETGEAR presently has a consensus target price of $33.50, suggesting a potential upside of 51.93%. Given NETGEAR’s stronger consensus rating and higher probable upside, equities analysts plainly believe NETGEAR is more favorable than Veea.

Insider and Institutional Ownership

83.0% of NETGEAR shares are held by institutional investors. Comparatively, 25.9% of Veea shares are held by institutional investors. 3.1% of NETGEAR shares are held by insiders. Comparatively, 60.8% of Veea shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares NETGEAR and Veea’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
NETGEAR-3.71%-2.79%-1.67%
VeeaN/AN/A-41.65%

Summary

NETGEAR beats Veea on 8 of the 14 factors compared between the two stocks.

About NETGEAR

(Get Free Report)

NETGEAR, Inc. provides connectivity solutions the Americas; Europe, the Middle East, Africa; and the Asia Pacific. The company operates in two segments, Connected Home, and NETGEAR for Business. The Connected Home segment offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, digital displays, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, and Wi-Fi network adapters; and provides value-added service offerings, including security and privacy, technical support, and parental controls. The NETGEAR for Business segment provides pro AV Solutions; pro routers; enterprise grade cloud managed or standalone access points; general purpose ethernet switches; NETGEAR Insight remote management software; and NETGEAR engage controller. It markets and sells its products through wholesale distributors, traditional and online retailers, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store. The company was incorporated in 1996 and is headquartered in San Jose, California.

About Veea

(Get Free Report)

Veea Inc. provides computing, multiaccess multiprotocol communications, edge storage, and cybersecurity solutions. The company offers multiaccess edge computing (MEC) platform that redefines connectivity and computing at the edge by integrating functions of servers, network attached storage (NAS), routers, firewalls, Wi-Fi Access Points, IoT gateways, and 4G and 5G connections; and Veea Edge Platform enables direct connections from the optical fiber, cellular, and satellite networks. It also provides VeeaHub STAX, an edge computing product integrated with wireless access, including Wi-Fi 6; VeeaHub that offers connectivity options for pro indoor smart edge applications; and VeeaHub Outdoor that integrates with wireless connectivity for smart edge applications in outdoor and industrial environments. The company also offers TROLLEE, a smart shopping cart platform; the VeeaHub toolkit; and Veea AdEdge, an advertising platform. Veea Inc. was founded in 2014 and is headquartered in New York, New York.