Finisar Corporation (NASDAQ: FNSR) and Calix (NYSE:CALX) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

86.4% of Finisar Corporation shares are owned by institutional investors. Comparatively, 64.5% of Calix shares are owned by institutional investors. 1.0% of Finisar Corporation shares are owned by company insiders. Comparatively, 16.5% of Calix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Finisar Corporation and Calix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Finisar Corporation 16.92% 13.11% 8.25%
Calix -12.72% -30.33% -17.39%

Earnings & Valuation

This table compares Finisar Corporation and Calix’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Finisar Corporation $1.45 billion 1.68 $274.41 million $2.13 10.27
Calix $496.63 million 0.50 -$61.63 million ($1.27) -3.90

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

Volatility & Risk

Finisar Corporation has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Calix has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Finisar Corporation and Calix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Finisar Corporation 0 1 10 3 3.14
Calix 0 2 1 0 2.33

Finisar Corporation presently has a consensus price target of $33.10, indicating a potential upside of 51.33%. Calix has a consensus price target of $6.50, indicating a potential upside of 31.31%. Given Finisar Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Finisar Corporation is more favorable than Calix.

Summary

Finisar Corporation beats Calix on 13 of the 14 factors compared between the two stocks.

About Finisar Corporation

Finisar Corporation (Finisar) is a provider of optical subsystems and components that are used in data communication and telecommunication applications. The Company’s optical subsystems consist of transmitters, receivers, transceivers, transponders and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in these networks, including the switches, routers, and servers used in wireline networks. These products rely on the use of semiconductor lasers and photodetectors in conjunction with integrated circuits and optoelectronic packaging to provide a means for transmitting and receiving digital signals over fiber optic cable at speeds ranging from less than one gigabit per second (Gbps), to more than 100 Gbps, over distances of less than 10 meters to more than 2,000 kilometers, using a range of network protocols and physical configurations.

About Calix

Calix, Inc. provides broadband communications access systems and software for fiber- and copper-based network architectures that enable communications service providers (CSPs), to transform their networks and connect to their residential and business subscribers. The Company enables CSPs to provide various services, from basic voice and data to advanced broadband services, over legacy and next-generation access networks. It develops and sells carrier-class hardware and cloud products. Its portfolio consists of three core systems and/or nodes: E-Series access systems and nodes (E-Series systems and nodes), B6 access nodes (B-Series nodes), and the C7 multiservice, multiprotocol access system (C-Series system). These systems and nodes are complemented by the P-Series optical network terminals and residential gateways, the GigaFamily of GigaCenters, GigaHubs, and GigaPoints, the Calix Management System, OpenLink Cable software and Compass Cloud family of software-as-a-service products.

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