Critical Review: Franklin Wireless (FKWL) and Its Rivals

Franklin Wireless (NASDAQ:FKWLGet Free Report) is one of 35 publicly-traded companies in the “Telephone & telegraph apparatus” industry, but how does it weigh in compared to its rivals? We will compare Franklin Wireless to related companies based on the strength of its risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for Franklin Wireless and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franklin Wireless 0 0 0 0 N/A
Franklin Wireless Competitors 253 661 1240 42 2.49

As a group, “Telephone & telegraph apparatus” companies have a potential upside of 29.00%. Given Franklin Wireless’ rivals higher possible upside, analysts clearly believe Franklin Wireless has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Franklin Wireless and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Franklin Wireless $45.95 million -$2.86 million -12.67
Franklin Wireless Competitors $681.04 million $6.38 million -3.91

Franklin Wireless’ rivals have higher revenue and earnings than Franklin Wireless. Franklin Wireless is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

9.9% of Franklin Wireless shares are held by institutional investors. Comparatively, 47.4% of shares of all “Telephone & telegraph apparatus” companies are held by institutional investors. 28.0% of Franklin Wireless shares are held by company insiders. Comparatively, 18.2% of shares of all “Telephone & telegraph apparatus” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Franklin Wireless and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franklin Wireless -6.23% -6.94% -5.33%
Franklin Wireless Competitors -9.69% 25.60% -3.15%

Volatility and Risk

Franklin Wireless has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, Franklin Wireless’ rivals have a beta of 3.62, indicating that their average share price is 262% more volatile than the S&P 500.

Summary

Franklin Wireless rivals beat Franklin Wireless on 8 of the 10 factors compared.

About Franklin Wireless

(Get Free Report)

Franklin Wireless Corp. provides intelligent wireless solutions. The company's products include 5G/4G wireless broadband products, such as wi-fi mobile hotspot, consumer home gateway customer-premises equipment (CPE), and enterprise gateway CPE; and IoT tracking and connected devices, including smart IoT tracking device, connected car, and home phone connect. It also offers IOT server platform and application, which comprises Pintrac, a cloud based telecom grade server platform; Pintrac Mobile Device Management, an LTE hotspot; Pintrac Pet, a pet tracking application; and Pintrac Auto that tracks, locates, and manages vehicles for consumers and businesses, which integrates hardware and software enabling machine-to-machine (M2M) applications and the Internet of Things (IoT). The company directly markets its products to wireless operators, as well as indirectly through strategic partners and distributors located primarily in the North America, the Caribbean and South America, and Asia. Franklin Wireless Corp. was founded in 1981 and is headquartered in San Diego, California.

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