Acacia Communications (NASDAQ: ACIA) and Plantronics (NYSE:PLT) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.
Earnings and Valuation
This table compares Acacia Communications and Plantronics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Acacia Communications||$471.30 million||3.72||$112.56 million||$3.38||13.22|
|Plantronics||$862.00 million||1.63||$138.73 million||$2.47||17.52|
Plantronics has higher revenue and earnings than Acacia Communications. Acacia Communications 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 Acacia Communications and Plantronics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Acacia Communications currently has a consensus price target of $52.14, suggesting a potential upside of 16.70%. Plantronics has a consensus price target of $60.00, suggesting a potential upside of 38.66%. Given Plantronics’ higher probable upside, analysts clearly believe Plantronics is more favorable than Acacia Communications.
This table compares Acacia Communications and Plantronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
81.9% of Acacia Communications shares are owned by institutional investors. Comparatively, 91.2% of Plantronics shares are owned by institutional investors. 37.1% of Acacia Communications shares are owned by company insiders. Comparatively, 3.2% of Plantronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Acacia Communications has a beta of 3.48, meaning that its share price is 248% more volatile than the S&P 500. Comparatively, Plantronics has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.
Plantronics pays an annual dividend of $0.60 per share and has a dividend yield of 1.4%. Acacia Communications does not pay a dividend. Plantronics pays out 24.3% of its earnings in the form of a dividend.
Acacia Communications beats Plantronics on 9 of the 15 factors compared between the two stocks.
About Acacia Communications
Acacia Communications, Inc. provides high-speed coherent interconnect products. The Company’s products include a series of low-power coherent digital signal processor application-specific integrated circuits (DSP ASICs), and silicon photonic integrated circuits (silicon PICs), which it has integrated into families of optical interconnect modules with transmission speeds ranging from 100 to 400 gigabits per second (Gbps) for use in long-haul, metro and inter-data center markets. The Company is also developing optical interconnect modules that will enable transmission speeds of one terabit (1,000 gigabits) per second and above. The Company’s modules perform a majority of the digital signal processing and optical functions in optical interconnects. The Company’s coherent DSP ASICs are manufactured using complementary metal oxide semiconductor (CMOS), and its silicon PICs are manufactured using a CMOS-compatible process.
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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