Analyzing Envivio (ENVI) and Acacia Communications (ACIA)

Envivio (NASDAQ: ENVI) and Acacia Communications (NASDAQ:ACIA) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Envivio and Acacia Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Envivio 0 0 0 0 N/A
Acacia Communications 0 1 9 0 2.90

Acacia Communications has a consensus price target of $50.50, suggesting a potential upside of 25.06%.

Profitability

This table compares Envivio and Acacia Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Envivio -5.31% -7.98% -4.76%
Acacia Communications 27.98% 25.29% 21.83%

Valuation & Earnings

This table compares Envivio and Acacia Communications’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Envivio N/A N/A N/A ($0.30) N/A
Acacia Communications $478.41 million 3.32 $131.57 million $2.96 13.64

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

Institutional & Insider Ownership

91.5% of Acacia Communications shares are owned by institutional investors. 37.1% of Acacia Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Acacia Communications beats Envivio on 8 of the 8 factors compared between the two stocks.

Envivio Company Profile

Envivio, Inc. is a provider of software-based Internet protocol (IP) video processing and distribution solutions that enable the delivery of video to consumers. The Company’s solutions enable service providers and content providers to offer video across a range of video formats, networks, consumer devices and operating systems. The Company enables service providers and content providers to deliver linear broadcast and on-demand video services to their customers via various screens, such as televisions, tablets, smartphones, laptops, personal computers (PCs) and gaming devices. The Company’s product line includes Muse, Halo, Envivio appliances and Guru. Its software-based solution delivers a converged multi-screen service for traditional Pay-television, and across mobile, broadband and managed networks. The Company’s solution enables the transport of video through different networks, such as broadband and mobile networks, or traditional cable and satellite broadcast networks.

Acacia Communications Company Profile

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.

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