Head-To-Head Survey: Extreme Networks (NASDAQ:EXTR) and Franklin Wireless (NASDAQ:FKWL)

Extreme Networks (NASDAQ:EXTR) and Franklin Wireless (NASDAQ:FKWL) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk and Volatility

Extreme Networks has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, Franklin Wireless has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Insider and Institutional Ownership

91.1% of Extreme Networks shares are owned by institutional investors. Comparatively, 18.5% of Franklin Wireless shares are owned by institutional investors. 3.7% of Extreme Networks shares are owned by company insiders. Comparatively, 31.1% of Franklin Wireless shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Extreme Networks and Franklin Wireless’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extreme Networks	-0.65%	82.47%	4.18%
Franklin Wireless	-3.68%	-4.48%	-3.29%

Analyst Recommendations

This is a breakdown of current recommendations for Extreme Networks and Franklin Wireless, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extreme Networks	0	1	5	0	2.83
Franklin Wireless	0	0	0	0	0.00

Extreme Networks currently has a consensus price target of $22.92, indicating a potential upside of 6.54%. Given Extreme Networks’ stronger consensus rating and higher probable upside, analysts clearly believe Extreme Networks is more favorable than Franklin Wireless.

Earnings & Valuation

This table compares Extreme Networks and Franklin Wireless”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extreme Networks	$1.14 billion	2.51	-$7.47 million	($0.05)	-430.20
Franklin Wireless	$30.80 million	N/A	-$3.96 million	($0.14)	-30.21

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

Summary

Extreme Networks beats Franklin Wireless on 10 of the 13 factors compared between the two stocks.

About Extreme Networks

Extreme Networks, Inc. delivers cloud-driven networking solutions that leverage the powers of machine learning, artificial intelligence, analytics, and automation.
The company designs, develops, and manufactures wired and wireless network infrastructure equipment and develops the software for network management, policy, analytics, security, and access controls. Over 50,000 customers globally trust their end-to-end, cloud-driven networking solutions and rely on our top-rated services and support to accelerate their digital transformation efforts.

About Franklin Wireless

Franklin Wireless Corp. provides integrated wireless solutions. The company's products include 5G/4G wireless broadband products, such as wi-fi mobile hotspot, fixed wireless routers, 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; Pintrac Auto that tracks, locates, and manages vehicles for consumers and businesses; and JEXtream, a cloud based telecom grade server platform for 5G devices and routers that enables enhanced remote management of device functionality. The company directly markets and sells 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.