Contrasting Viavi Solutions (NASDAQ:VIAV) & Viasat (NASDAQ:VSAT)

Viasat (NASDAQ:VSAT) and Viavi Solutions (NASDAQ:VIAV) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Volatility & Risk

Viasat has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Valuation & Earnings

This table compares Viasat and Viavi Solutions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viasat	$4.64 billion	2.17	-$34.09 million	($0.24)	-304.25
Viavi Solutions	$1.52 billion	5.65	-$30.40 million	($0.15)	-231.60

Viavi Solutions has lower revenue, but higher earnings than Viasat. Viasat is trading at a lower price-to-earnings ratio than Viavi Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Viasat and Viavi Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viasat	-0.64%	1.44%	0.45%
Viavi Solutions	-2.00%	19.60%	7.48%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Viasat and Viavi Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viasat	1	2	7	1	2.73
Viavi Solutions	1	1	6	1	2.78

Viasat currently has a consensus target price of $90.67, indicating a potential upside of 24.17%. Viavi Solutions has a consensus target price of $55.43, indicating a potential upside of 59.55%. Given Viavi Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Viavi Solutions is more favorable than Viasat.

Institutional & Insider Ownership

86.0% of Viasat shares are held by institutional investors. Comparatively, 95.5% of Viavi Solutions shares are held by institutional investors. 1.4% of Viasat shares are held by insiders. Comparatively, 1.8% of Viavi Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Viavi Solutions beats Viasat on 10 of the 14 factors compared between the two stocks.

About Viasat

Viasat, Inc. provides broadband and communications products and services worldwide. The company's Satellite Services segment offers satellite-based fixed broadband services, including broadband internet access and voice over internet protocol services to consumers and businesses; in-flight entertainment and aviation software services to commercial airlines and private business jets; satellite-based connectivity services; mobile broadband services, including satellite-based internet services to energy offshore vessels, cruise ships, consumer ferries, and yachts; and energy services, which include ultra-secure solutions IP connectivity, bandwidth-optimized over-the-top applications, industrial internet-of-things big data enablement, and industry-leading machine learning analytics. Its Commercial Networks segment offers fixed broadband satellite communication systems comprising satellite network infrastructure and ground terminals; mobile broadband satellite communication systems; antenna systems for terrestrial and satellite applications, such as earth imaging, remote sensing, mobile satellite communication, Ka-band earth stations, and other multi-band antennas; and space systems design and satellite networking development systems. The company's Government Systems segment offers government mobile broadband products and services include mobile broadband modems, and terminals and network access control systems; mesh and hub-and-spoke satellite networking systems; secure networking, cybersecurity, and information assurance products; and tactical data link solutions. It designs and development of satellite and ground communications systems and network function virtualization, as well as ground-based network subsystems, as well as space system design and development products and services include architectures for GEO, MEO, LEO satellites, and other satellite platforms. The company was incorporated in 1986 and is headquartered in Carlsbad, California.

About Viavi Solutions

Viavi Solutions, Inc. engages in the provision of network test, monitoring, and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It operates through the following segments: Network Enablement, Service Enablement, and Optical Security and Performance. The Network Enablement segment offers an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. The Service Enablement segment covers solutions and services primarily for communication service providers, and enterprises that deliver and/or operate broadband and IP networks (fixed and mobile) supporting voice, video, and data services as well as a wide range of applications. The Optical Security and Performance segment leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell products targeting anti-counterfeiting, consumer and industrial, government, healthcare, and other markets. The company was founded in 1979 and is headquartered in Chandler, AZ.