Meru Networks (NASDAQ: MERU) and Superconductor Technologies (NASDAQ:SCON) are both telecommunications services companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitabiliy, analyst recommendations and institutional ownership.

Profitability

This table compares Meru Networks and Superconductor Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meru Networks -46.15% N/A -86.56%
Superconductor Technologies -25,848.84% -108.51% -97.36%

Earnings and Valuation

This table compares Meru Networks and Superconductor Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Meru Networks N/A N/A N/A N/A N/A
Superconductor Technologies $43,000.00 425.70 -$9.09 million ($2.94) -0.59

Meru Networks has higher revenue, but lower earnings than Superconductor Technologies.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Meru Networks and Superconductor Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meru Networks 0 0 0 0 N/A
Superconductor Technologies 0 0 2 0 3.00

Superconductor Technologies has a consensus price target of $3.00, indicating a potential upside of 73.41%. Given Superconductor Technologies’ higher possible upside, analysts clearly believe Superconductor Technologies is more favorable than Meru Networks.

Institutional & Insider Ownership

1.6% of Superconductor Technologies shares are held by institutional investors. 3.7% of Superconductor Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Superconductor Technologies beats Meru Networks on 5 of the 8 factors compared between the two stocks.

About Meru Networks

Meru Networks, Inc. (Meru) develops and markets a virtualized Wireless Local Area Network (WLAN) solution. The Company’s solution is built around its System Director Operating System, which runs on its controllers and access points. The Company offers additional products designed to deliver network management, diagnostics and security. The Company also offers support services related to its products, professional services, and training. Its products and services are sold through value added resellers, and distributors, as well as its sales force. Its System Director Operating System forms the core of its virtualized WLAN solution. It provides a family of controllers that run its System Director Operating System and work in conjunction with its access points. Its Wireless Fidelity (Wi-Fi) certified access points provide network connectivity for wireless devices. Its bring-your-own-device (BYOD) and policy management solutions are designed to automate secure guest access.

About Superconductor Technologies

Superconductor Technologies Inc. is engaged in developing and commercializing high temperature superconductor (HTS) materials and related technologies. The Company operates through the research, development, manufacture and marketing of high performance products used in cellular base stations segment. The Company develops products for the utility and telecommunications industries. The Company offers family of products, including SuperLink, which combines a specialized filter using HTS technology with a cryogenic cooler and a low-noise amplifier; AmpLink, which provides duplexing and uplink enhancement for personal communications service (PCS) and advanced wireless services (AWS) base stations, and SuperPlex, which provides a line of multiplexing solutions to reduce the need for additional antennas and coaxial cable feed lines, while providing functionality in both the 850 megahertz (MHz) cellular band and the 1,900 MHz PCS band.

Receive News & Ratings for Meru Networks Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Meru Networks Inc. and related companies with MarketBeat.com's FREE daily email newsletter.