TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Internet-of-Things (IoT) is the concept of having everyday things or devices connected to the internet or cloud, feeding the general public with information, diagnostics, and updates. From monitoring healthcare and restaurant facilities to home-based care for people with a chronic health issue, IoT is going to revolutionize everyday life.

Written by SmallCapPower.com

Today, we take a look at potentially undervalued IoT small caps that are trading below the industry average EV/Sales multiple of 1.4x.

1. Sierra Wireless Inc. (SWIR) – CAD37.29
Communications & Networking

Sierra Wireless, Inc. offers 2G, 3G and 4G cellular embedded wireless modules and gateways...

Average Analyst Rating: 3.0 (where a rating of 1 is a strong buy and a rating of 5 is a strong sell).

• Market Cap: $1.2 billion CAD
• Revenue (FY0): $826.80 million CAD
• Cash and Short-Term Investments (FY0, CAD): $138.0 million
• Enterprise Value To Sales : 1.31x

2. Sandvine Corp (SNVNF) – CAD3.09
Communications & Networking

Sandvine Corporation is engaged in research, design, manufacturing and sale of network policy control solutions for communications service providers.

The Company offers various solutions, including business intelligence, traffic optimization, cyber security, subscriber engagement, subscriber services and business services....

Average Analyst Rating: 2.5

• Market Cap: $398.7 million CAD
• Revenue (FY0):$162.20 million CAD
• Cash and Short Term Investments (FY0, CAD): $178.6 million
• Enterprise Value To Sales : 1.38x

3. WiLAN Inc (WILN) – CAD2.56
Communications & Networking

WiLAN Inc. is an intellectual property licensing company. The Company develops, acquires, licenses and enforces a range of technologies that are utilized in a range of markets, including communications and consumer electronics, medical, industrial, semiconductor, automotive and aerospace...

Average Analyst Rating: 1.0

• Market Cap: $284.6 million CAD
• Revenue (FY0): $124.70 million CAD
• Cash and Short Term Investments (FY0, CAD): $144.7 million
• Enterprise Value To Sales : 1.39x

4. Baylin Technologies Inc. (TSX:BYL) – CAD1.95
Communications & Networking

Baylin Technologies Inc. is a provider of wireless antenna solutions. The Company and its subsidiaries operate in the field of research, development, manufacture and sales of a range of antennas and communications solutions for the mobile, networking and wireless infrastructure markets, primarily in the Far East and North America...

Average Analyst Ratings: 2.0

• Market Cap: $42.3 million CAD
• Revenue (FY0): $85.3 million CAD
• Cash and Short Term Investments (FY0, CAD): $18.5 million
• Enterprise Value To Sales : 0.33x

5. Patient Home Monitoring Corp. (PHMZF) CAD$0.275
Healthcare Facilities & Services

Patient Home Monitoring Corp. is a healthcare service company that is engaged in providing in-home monitoring equipment, supplies and services to patients in the United States...

Analyst Ratings: 1.0

• Market Cap: $107.8 million CAD
• Revenue (FY0): $139.20 million CAD
• Cash and Short Term Investments(FY0, CAD): $6.8 million
• Enterprise Value To Sales : 0.90x