Comparing Franklin Wireless (NASDAQ:FKWL) & Silicom (NASDAQ:SILC)
Two smaller players in networking hardware, Franklin Wireless and Silicom, share similar end markets but diverge meaningfully in ownership structure, risk profile, and current financial performance. Here’s a concise, apples-to-apples look at how they stack up across key metrics investors tend to watch: valuation, earnings, profitability, volatility, analyst sentiment, and who owns the stock.
Ownership: Institutions vs. Insiders
- Institutional ownership: Silicom 52.9% vs. Franklin Wireless 18.5%.
- Insider ownership: Silicom 25.4% vs. Franklin Wireless 28.4%.
Silicom’s higher institutional base suggests greater participation from long-horizon funds, while Franklin’s slightly higher insider stake highlights internal conviction. The mix can influence liquidity and how each stock reacts to news.
Volatility and Risk
- Silicom beta: 1.05 (roughly 5% more volatile than the broader market).
- Franklin Wireless beta: 0.25 (about 75% less volatile than the market).
Franklin’s lower beta implies relatively muted swings, while Silicom tends to move more in line with market momentum.
Analyst Sentiment and Potential Upside
- Silicom: 1 sell, 1 hold; rating score 1.50.
- Franklin Wireless: 1 sell, 1 buy; rating score 2.00.
- Franklin Wireless price target: $6.00, implying about 35.75% upside from recent levels.
On balance, Franklin Wireless carries a slightly more favorable aggregate rating and a higher projected upside, though opinions are clearly mixed for both names.
Top Line, Earnings, and Valuation
- Revenue: Silicom $58.11 million vs. Franklin Wireless $46.09 million.
- Price/Sales: Silicom 1.41; Franklin Wireless not available.
- Net income: Silicom -$13.71 million vs. Franklin Wireless -$0.24 million.
- EPS: Silicom -$2.33 vs. Franklin Wireless -$0.01.
- P/E: Silicom -6.21 vs. Franklin Wireless -442.00 (negative P/E reflects losses).
Silicom brings in more revenue, but its losses are materially larger. Franklin Wireless, while smaller on the top line, is much closer to breakeven. Negative P/E figures aren’t particularly useful for valuation comparisons; in this context, Franklin’s narrower loss profile is the more noteworthy takeaway.
Profitability Snapshot
- Net margin: Silicom -22.47% vs. Franklin Wireless -0.26%.
- Return on equity: Silicom -10.83% vs. Franklin Wireless -0.31%.
- Return on assets: Silicom -8.93% vs. Franklin Wireless -0.23%.
Franklin Wireless appears substantially closer to profitability across key ratios, while Silicom’s heavier losses weigh on efficiency metrics.
Who Comes Out Ahead?
Measured across 13 comparable data points, Franklin Wireless leads in a majority of them. The company’s lower volatility, narrower losses, and relatively more constructive consensus view give it an edge in this head-to-head, even as Silicom maintains stronger institutional participation and higher revenue.
What Each Company Does
Silicom (NASDAQ:SILC)
Silicom develops and supports networking and data infrastructure hardware for servers, server-based systems, and communications gear. Its portfolio spans server network interface cards and advanced smart adapters designed for tasks like packet switching and redirection, encryption and compression acceleration, forward error correction, time synchronization, and FPGA-based offload. The company also offers virtualized and universal CPE along with edge platforms for SD-WAN, SASE, telco routing, and NFV use cases. Silicom sells into OEMs, cloud providers, telcos, mobile operators, and related service providers, with operations across the United States, Israel, Europe, North America, and the Asia-Pacific. Founded in 1987, it is headquartered in Kfar Saba, Israel.
Franklin Wireless (NASDAQ:FKWL)
Franklin Wireless provides integrated wireless solutions, with a focus on 5G/4G broadband devices including mobile hotspots, fixed wireless routers, and enterprise gateway CPE. It also develops IoT-focused products such as asset and pet trackers, connected car devices, and home phone connect hardware. On the software side, the company offers cloud-based platforms for device management and telemetry, including toolsets that enable remote administration of hotspots, routers, and IoT endpoints. Franklin Wireless sells directly to carriers and indirectly through partners and distributors in North America, the Caribbean and South America, and Asia. The company was founded in 1981 and is based in San Diego, California.
The Bottom Line
Both companies operate in niche corners of networking and edge connectivity, but their financial profiles diverge. Silicom has higher sales and deeper ties with institutions, yet faces steeper losses and greater volatility. Franklin Wireless is smaller and less institutionally owned, but shows steadier risk characteristics, closer-to-breakeven metrics, and a slightly more optimistic near-term outlook from analysts. As always, consider risk tolerance, time horizon, and product pipelines before making any investment decision.
