Akoustis Technologies (NASDAQ:AKTS) and Franklin Wireless (NASDAQ:FKWL) Critical Review

Akoustis Technologies (NASDAQ:AKTSGet Free Report) and Franklin Wireless (NASDAQ:FKWLGet Free Report) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Akoustis Technologies and Franklin Wireless, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Akoustis Technologies 0 2 1 0 2.33
Franklin Wireless 0 0 0 0 N/A

Akoustis Technologies presently has a consensus target price of $1.92, indicating a potential upside of 221.80%. Given Akoustis Technologies’ higher probable upside, equities research analysts clearly believe Akoustis Technologies is more favorable than Franklin Wireless.

Profitability

This table compares Akoustis Technologies and Franklin Wireless’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Akoustis Technologies -226.21% -71.24% -42.00%
Franklin Wireless -4.20% -4.86% -3.71%

Institutional & Insider Ownership

52.1% of Akoustis Technologies shares are held by institutional investors. Comparatively, 9.9% of Franklin Wireless shares are held by institutional investors. 5.6% of Akoustis Technologies shares are held by company insiders. Comparatively, 29.6% of Franklin Wireless shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Akoustis Technologies and Franklin Wireless’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Akoustis Technologies $27.12 million 1.66 -$63.56 million ($0.95) -0.63
Franklin Wireless $45.95 million 0.77 -$2.86 million ($0.16) -18.75

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

Risk & Volatility

Akoustis Technologies has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Franklin Wireless has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.

Summary

Franklin Wireless beats Akoustis Technologies on 7 of the 13 factors compared between the two stocks.

About Akoustis Technologies

(Get Free Report)

Akoustis Technologies, Inc., through its subsidiary, Akoustis, Inc., designs, develops, manufactures, and sells radio frequency (RF) filter products for the mobile wireless device industry in the United States, Asia, Europe, and internationally. It operates through Foundry Fabrication Services and RF Filters segments. The Foundry Fabrication Services segment provides engineering review and backend packaging services. Its RF Filters segment sells amplifier and filter products. It offers RF filters for mobile wireless devices, such as smartphones and tablets, cellular infrastructure equipment, Wi-Fi customer premise equipment, and military and defense applications. The company was founded in 2013 and is headquartered in Huntersville, North Carolina.

About Franklin Wireless

(Get Free Report)

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.

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