Lantronix (NASDAQ: LTRX) and Alcatel Lucent (NYSE:ALU) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.
Risk and Volatility
Lantronix has a beta of -0.18, meaning that its share price is 118% less volatile than the S&P 500. Comparatively, Alcatel Lucent has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500.
This is a summary of current ratings for Lantronix and Alcatel Lucent, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lantronix currently has a consensus price target of $4.00, indicating a potential upside of 75.44%. Given Lantronix’s higher possible upside, equities analysts plainly believe Lantronix is more favorable than Alcatel Lucent.
Valuation and Earnings
This table compares Lantronix and Alcatel Lucent’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
Alcatel Lucent has lower revenue, but higher earnings than Lantronix. Lantronix is trading at a lower price-to-earnings ratio than Alcatel Lucent, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
15.2% of Lantronix shares are held by institutional investors. 52.4% of Lantronix shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Lantronix and Alcatel Lucent’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Alcatel Lucent beats Lantronix on 6 of the 11 factors compared between the two stocks.
Lantronix Company Profile
Lantronix, Inc. is a provider of secure data access and management solutions for Internet of things (IoT) and information technology (IT) assets. The Company organizes its products and solutions into three product lines, including IoT, IT Management and Other. Its IoT products consist of IoT Gateways and IoT Building Blocks. The Company’s IT Management product line includes console management, power management and keyboard video mouse (KVM), products that provide remote out-of-band management (OOBM) access to IT and networking infrastructure deployed in test labs, data centers and server rooms. Its Other product line includes non-focus products, such as the xPrintServer, xSenso and WiBox. Its connectivity solutions serves a range of industries, including data center, medical, security, environmental and government. The Company conducts its business in approximately three geographic regions, including the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific Japan (APJ).
Alcatel Lucent Company Profile
Alcatel Lucent SA is a provider of Internet protocol (IP) networking, ultra-broadband access and cloud technology solutions. The Company operates through two segments for the networks business. The Ultra Broadband Networks segment consists of Mobile Networks and Fixed Networks business groups. The IP Networks and Applications segment consists of Internet protocol (IP)/Optical Networks and Applications and Analytics business groups. Its other segment consists of businesses run as separate operations (Alcatel Submarine Networks and Radio Frequency Systems (RFS)). The Company offers a range of solutions, including Communications and collaboration, IP Core Routing, IP/optical integration, long term evolution (LTE) Ultra-Broadband, Software-defined networking and Vplus. The Company offers a range of consulting, managed, maintenance and professional services, including Bell Labs Consulting and Build, Operate and Manage (BOM) Solution for Mobility Networks. The main shareholder is Nokia.
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