Harmonic (NASDAQ: HLIT) and Ixia (NASDAQ:XXIA) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitabiliy, institutional ownership and valuation.
This table compares Harmonic and Ixia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Harmonic has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Ixia has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.
Earnings and Valuation
This table compares Harmonic and Ixia’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Harmonic||$407.02 million||0.82||-$1.02 million||($0.91)||-4.56|
Ixia has higher revenue, but lower earnings than Harmonic. Harmonic is trading at a lower price-to-earnings ratio than Ixia, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
98.2% of Harmonic shares are held by institutional investors. Comparatively, 63.6% of Ixia shares are held by institutional investors. 5.5% of Harmonic shares are held by insiders. Comparatively, 24.4% of Ixia shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of recent ratings and target prices for Harmonic and Ixia, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Harmonic currently has a consensus target price of $5.67, indicating a potential upside of 36.55%. Ixia has a consensus target price of $19.65, indicating a potential upside of 0.00%. Given Harmonic’s stronger consensus rating and higher possible upside, research analysts clearly believe Harmonic is more favorable than Ixia.
Harmonic beats Ixia on 8 of the 10 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.
Ixia is a provider of physical and virtual network application performance and security resilience solutions. The Company’s product solutions consist of its hardware platforms, software applications and services, including warranty and maintenance offerings. The Company helps its customers to validate the performance and security resilience of their applications and networks. The Company offers network test hardware platforms with interchangeable interfaces, using a common set of applications and Application Programing Interfaces (APIs). The Company provides its solutions to network equipment manufacturers (NEMs), service providers, and enterprise and government organizations. The Company’s product solutions consist of its hardware platforms, such as chassis, interface cards and appliances, software application tools, and services, including its warranty and maintenance offerings and professional services.
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