Reviewing Westell Technologies (NASDAQ:WSTL) and DASAN Zhone Solutions (DZSI)
Westell Technologies (NASDAQ: WSTL) and DASAN Zhone Solutions (NASDAQ:DZSI) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitabiliy.
Insider & Institutional Ownership
9.0% of DASAN Zhone Solutions shares are held by institutional investors. 24.5% of Westell Technologies shares are held by insiders. Comparatively, 65.0% of DASAN Zhone Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Westell Technologies has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, DASAN Zhone Solutions has a beta of 4.41, indicating that its share price is 341% more volatile than the S&P 500.
This is a breakdown of current recommendations for Westell Technologies and DASAN Zhone Solutions, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DASAN Zhone Solutions||0||0||0||0||N/A|
This table compares Westell Technologies and DASAN Zhone Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DASAN Zhone Solutions||-9.30%||-26.94%||-13.95%|
Valuation and Earnings
This table compares Westell Technologies and DASAN Zhone Solutions’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Westell Technologies||$62.97 million||0.75||-$4.11 million||($1.04)||-2.95|
|DASAN Zhone Solutions||$179.14 million||0.63||-$7.61 million||($1.12)||-6.20|
Westell Technologies has higher revenue, but lower earnings than DASAN Zhone Solutions. DASAN Zhone Solutions is trading at a lower price-to-earnings ratio than Westell Technologies, indicating that it is currently the more affordable of the two stocks.
Westell Technologies Company Profile
Westell Technologies, Inc. is a provider of in-building wireless, intelligent site management, cell site optimization and outside plant solutions. The Company’s set of products and solutions are designed to manage network performance for carriers, integrators and other network operators. The Company operates in two segments: In-Building Wireless (IBW) and Communication Solutions Group (CSG). The Company’s segments are engaged in the design, development, assembly, and marketing of a range of products and solutions. The IBW segment solutions include distributed antenna systems (DAS) conditioners, digital repeaters and bi-directional amplifiers (BDAs), and system components and antennas, all used by wireless service providers and third-party hosts to fine tune radio frequency (RF) signals. The Company’s intelligent site management solutions include a suite of remote monitoring and control devices.
DASAN Zhone Solutions Company Profile
DASAN Zhone Solutions, Inc., formerly Zhone Technologies, Inc., designs, develops and manufactures communications network equipment for telecommunications operators and enterprises across the world. The Company’s products provide enterprise solutions that enable both network service providers and enterprises to deliver high speed fiber access, while transporting voice, video and data to the end user. In addition to its product offerings in its core business, it offers FiberLAN Passive Optical local area network (LAN), which provides an alternative to switched copper-based LANs. The customers of its FiberLAN business include hospitality, government, education, manufacturing and business enterprises. Its products span two categories: SLMS Products, and Legacy, Service and Other Products. Its SLMS Products include Broadband Aggregation and Service, Customer Premise Equipment (CPE), Zhone Management System and FiberLAN Passive Optical LAN.
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