Critical Review: Vistance Networks (NASDAQ:VISN) and Extreme Networks (NASDAQ:EXTR)

Extreme Networks (NASDAQ:EXTR) and Vistance Networks (NASDAQ:VISN) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

91.0% of Extreme Networks shares are owned by institutional investors. Comparatively, 88.0% of Vistance Networks shares are owned by institutional investors. 3.6% of Extreme Networks shares are owned by insiders. Comparatively, 3.5% of Vistance Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Extreme Networks has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Vistance Networks has a beta of 2.36, indicating that its share price is 136% more volatile than the S&P 500.

Profitability

This table compares Extreme Networks and Vistance Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extreme Networks	3.28%	88.88%	6.32%
Vistance Networks	247.69%	32.28%	4.61%

Earnings & Valuation

This table compares Extreme Networks and Vistance Networks”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extreme Networks	$1.28 billion	2.29	$42.12 million	$0.31	72.55
Vistance Networks	$1.93 billion	0.75	$2.28 billion	$30.80	0.20

Vistance Networks has higher revenue and earnings than Extreme Networks. Vistance Networks is trading at a lower price-to-earnings ratio than Extreme Networks, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Extreme Networks and Vistance Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extreme Networks	1	1	7	0	2.67
Vistance Networks	0	4	0	0	2.00

Extreme Networks presently has a consensus price target of $32.25, suggesting a potential upside of 43.40%. Vistance Networks has a consensus price target of $19.33, suggesting a potential upside of 206.39%. Given Vistance Networks’ higher probable upside, analysts plainly believe Vistance Networks is more favorable than Extreme Networks.

Summary

Extreme Networks beats Vistance Networks on 8 of the 14 factors compared between the two stocks.

About Extreme Networks

Extreme Networks, Inc. delivers cloud-driven networking solutions that leverage the powers of machine learning, artificial intelligence, analytics, and automation.
The company designs, develops, and manufactures wired and wireless network infrastructure equipment and develops the software for network management, policy, analytics, security, and access controls. Over 50,000 customers globally trust their end-to-end, cloud-driven networking solutions and rely on our top-rated services and support to accelerate their digital transformation efforts.

About Vistance Networks

CommScope Holding Company, Inc. provides infrastructure solutions for communications and entertainment networks. It operates through four segments: Broadband Networks (Broadband), Outdoor Wireless Networks (OWN), Venue and Campus Networks (VCN), and Home Networks (Home). The Broadband segment provides converged cable access platforms, passive optical networking products, video systems, access technologies, fiber and coaxial cables, fiber and copper connectivity products, and hardened closures to the telco and cable provider broadband market. The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, Spectrum Access System, and Comsearch products to the macro and metro cell markets. The VCN segment offers Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells, enterprise fiber, and copper infrastructures for campuses, venues, data centers, and buildings. The Home segment provides devices and related software, and management solutions that offer residential connectivity and services to subscribers, such as digital subscriber lines, cable modems, and telephony and data gateways; and set top boxes and software that support cable, satellite, and Internet protocol television content delivery, which include digital video recorders, high definition set top boxes, and hybrid set top devices. It offers its products and services through specialized resellers and distributors, satellite video distributors, and system integrators, as well as directly to customers in the United States, Europe, the Middle East, Africa, the Asia Pacific, the Caribbean, Latin America, and Canada. The company was formerly known as Cedar I Holding Company, Inc. and changed its name to CommScope Holding Company, Inc. in January 2011. CommScope Holding Company, Inc. was founded in 1976 and is headquartered in Hickory, North Carolina.