NeoPhotonics (NYSE: NPTN) and Aerohive Networks (NYSE:HIVE) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
Risk and Volatility
NeoPhotonics has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Aerohive Networks has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.
Earnings & Valuation
This table compares NeoPhotonics and Aerohive Networks’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NeoPhotonics||$292.89 million||1.00||-$53.33 million||($1.23)||-5.43|
|Aerohive Networks||$152.90 million||1.50||-$22.92 million||($0.42)||-10.09|
Aerohive Networks has lower revenue, but higher earnings than NeoPhotonics. Aerohive Networks is trading at a lower price-to-earnings ratio than NeoPhotonics, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
78.0% of NeoPhotonics shares are held by institutional investors. Comparatively, 46.8% of Aerohive Networks shares are held by institutional investors. 17.3% of NeoPhotonics shares are held by insiders. Comparatively, 26.2% of Aerohive Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for NeoPhotonics and Aerohive Networks, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NeoPhotonics currently has a consensus target price of $8.92, indicating a potential upside of 33.48%. Aerohive Networks has a consensus target price of $6.13, indicating a potential upside of 44.46%. Given Aerohive Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Aerohive Networks is more favorable than NeoPhotonics.
This table compares NeoPhotonics and Aerohive Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Aerohive Networks beats NeoPhotonics on 8 of the 15 factors compared between the two stocks.
NeoPhotonics Corporation develops, manufactures and markets optoelectronic products that transmit, receive and switch digital optical signals for communications networks. The Company develops and manufactures Transmitter Products, Receiver Products and Switch Products that are used in ultra-high speed digital optical communications, high speed switching and provisioning, and access connections for wireless and fiber-to-the-home communications networks. The Company’s products are categorized into groups, including High Speed Products and Network Products and Solutions. The High Speed Products includes products designed for 100G and beyond for telecommunication and datacenter or content provider networks and applications. Its Network Products and Solutions consist of various products designed for applications below 100G, and include 40G products. The Company combines its transmitter and receiver products into Transceiver modules.
About Aerohive Networks
Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.
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