Harmonic (NASDAQ: HLIT) and Plantronics (NYSE:PLT) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.
Plantronics pays an annual dividend of $0.60 per share and has a dividend yield of 1.0%. Harmonic does not pay a dividend. Plantronics pays out 285.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Harmonic and Plantronics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Harmonic||$358.25 million||0.88||-$82.95 million||($0.85)||-4.41|
|Plantronics||$881.18 million||2.20||$82.59 million||$0.21||279.63|
Plantronics has higher revenue and earnings than Harmonic. Harmonic is trading at a lower price-to-earnings ratio than Plantronics, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Harmonic and Plantronics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Harmonic currently has a consensus price target of $5.33, suggesting a potential upside of 42.22%. Plantronics has a consensus price target of $60.00, suggesting a potential upside of 2.18%. Given Harmonic’s higher probable upside, equities analysts plainly believe Harmonic is more favorable than Plantronics.
Risk & Volatility
Harmonic has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Plantronics has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.
This table compares Harmonic and Plantronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
91.8% of Harmonic shares are held by institutional investors. Comparatively, 94.1% of Plantronics shares are held by institutional investors. 5.5% of Harmonic shares are held by company insiders. Comparatively, 3.2% of Plantronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Plantronics beats Harmonic on 11 of the 14 factors compared between the two stocks.
Harmonic Inc. (Harmonic) designs, manufactures and sells video infrastructure products, and system solutions. The Company has two segments: Video and Cable Edge. Harmonic provides technical support and professional services to its customers around the world. The Video segment sells video processing and production, and playout solutions and services to broadcast and media companies, streaming media companies, cable operators, and satellite and telecommunications (telco), and pay television (TV) service providers. Its Cable Edge business sells cable edge solutions and related services to cable operators around the world. The Video segment offers a range of products and solutions, as well as software-based media processing platforms. The Company’s Narrowcast Services Gateway (NSG) products are integrated edge gateway products that integrate routing, multiplexing, scrambling and modulation into a single package for the delivery of narrowcast services to subscribers over cable networks.
Plantronics, Inc. (Plantronics) is engaged in the design, manufacture, and distribution of headsets for business and consumer applications, and other specialty products for the hearing impaired. The Company is a global designer, manufacturer and marketer of communications headsets, telephone headset systems, other communication endpoints and accessories for the business and consumer markets. The Company develops communication products for offices and contact centers, mobile devices, cordless phones, and computers and gaming consoles. Its product categories include Enterprise, which includes corded and cordless communication headsets, audio processors, and telephone systems, and Consumer, which includes Bluetooth and corded products for mobile device applications, personal computer (PC) and gaming headsets, and specialty products marketed for hearing impaired individuals. It offers its products under two brands: Plantronics and Clarity.
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