Nice ComparisonI own them both............not taking any chances
Post says analyst prefers Sandvine to Sierra Wireless
2013-10-11 07:15 ET - In the News
See In the News (C-SW) Sierra Wireless Inc
The Financial Post reports in its Thursday edition machine-to-machine tech player Sierra Wireless is now trading at a premium compared with more profitable wireless equities. The Post's Matthew Braga, writing in Trading Desk, says instead of buying Sierra Wireless, tech investors should consider buying Sandvine instead, says Scotia Capital analyst Gus Papageorgiou. Despite a new strategic direction that has garnered commitments from the likes of Chrysler, Sierra is trading at a price-earnings multiple of 52 times -- much higher than Sandvine's P/E of roughly 14.2 times. Sierra is also less attractive than more profitable wireless equities such as Qualcomm or Apple, Mr. Papageorgiou said. "SVC is trading at a significant discount to its comps, despite the fact it is more profitable and growing faster," the analyst said in a note. In July, it was expected Sierra shares would get a double-digit boost over the following months, thanks largely to interest from carmakers looking to invest more heavily in wireless connectivity technology. However, Mr. Papageorgiou now expects growth is likely a year away. Mr. Papageorgiou also points out the two companies' market caps in cash are roughly equal