Critical Comparison: ARRIS International PLC (ARRS) vs. Infinera Corporation (INFN)
ARRIS International PLC (NASDAQ: ARRS) and Infinera Corporation (NASDAQ:INFN) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.
Valuation & Earnings
This table compares ARRIS International PLC and Infinera Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ARRIS International PLC||$6.63 billion||0.80||$732.01 million||$0.65||43.32|
|Infinera Corporation||$718.84 million||1.74||-$60.74 million||($0.90)||-9.39|
ARRIS International PLC has higher revenue and earnings than Infinera Corporation. Infinera Corporation is trading at a lower price-to-earnings ratio than ARRIS International PLC, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for ARRIS International PLC and Infinera Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ARRIS International PLC||0||2||6||0||2.75|
ARRIS International PLC currently has a consensus price target of $32.88, suggesting a potential upside of 16.74%. Infinera Corporation has a consensus price target of $11.82, suggesting a potential upside of 39.86%. Given Infinera Corporation’s higher possible upside, analysts plainly believe Infinera Corporation is more favorable than ARRIS International PLC.
Insider and Institutional Ownership
86.8% of ARRIS International PLC shares are owned by institutional investors. Comparatively, 86.7% of Infinera Corporation shares are owned by institutional investors. 0.9% of ARRIS International PLC shares are owned by company insiders. Comparatively, 2.9% of Infinera Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
ARRIS International PLC has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Infinera Corporation has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.
This table compares ARRIS International PLC and Infinera Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ARRIS International PLC||1.90%||13.97%||5.79%|
ARRIS International PLC beats Infinera Corporation on 8 of the 13 factors compared between the two stocks.
ARRIS International PLC Company Profile
ARRIS International plc is a media entertainment and data communications solutions provider. The Company operates in two segments: Customer Premises Equipment (CPE), and Network & Cloud (N&C). The Company enables service providers, including cable, telephone, and digital broadcast satellite operators, and media programmers to deliver media, voice and Internet Protocol (IP) data services to their subscribers. It is engaged in offering set-tops, digital video and IP television (IPTV) distribution systems, broadband access infrastructure platforms, and associated data and voice CPE, which it also sells directly to consumers through retail channels. Its solutions are complemented by an array of services, including technical support, repair and refurbishment, and system design and integration. The CPE segment consists of CPE Products-Video and CPE Products-Broadband. The N&C segment consists of Infrastructure Products, Cloud Software and Global Services.
Infinera Corporation Company Profile
Infinera Corporation provides optical transport networking equipment, software and services to telecommunications service providers, Internet content providers (ICPs), cable providers, wholesale and enterprise carriers, research and education institutions, enterprise customers and government entities across the globe. The Company’s portfolio consists of the Infinera DTN-X Family, the Infinera DTN platform, the Infinera Cloud Xpress Family, the Infinera XTM Series, the Infinera XTG Series and the Infinera FlexILS platform, addressing long-haul, subsea and metro networks end-to-end. Its technology includes Infinera Intelligent Transport Network Architecture, Infinera Photonic Integrated Circuits, Infinera FlexCoherent Processor, Super-Channels, Sliceable Photonics, Disaggregation, Integrated Digital Switching, Infinera Instant Bandwidth, Infinera Packet-Optical Transport, Multi-layer Switching and Optimization, and Management, Control and Security.
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