Oclaro (NASDAQ: OCLR) and Calix (NYSE:CALX) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Valuation & Earnings

This table compares Oclaro and Calix’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Oclaro $600.97 million 2.45 $140.44 million $0.75 11.65
Calix $496.63 million 0.54 -$61.63 million ($1.27) -4.17

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

Profitability

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

Net Margins Return on Equity Return on Assets
Oclaro 21.28% 27.63% 20.69%
Calix -12.72% -30.33% -17.39%

Analyst Ratings

This is a summary of recent ratings and price targets for Oclaro and Calix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oclaro 0 0 10 2 3.17
Calix 0 2 1 0 2.33

Oclaro currently has a consensus target price of $13.33, indicating a potential upside of 52.56%. Calix has a consensus target price of $6.50, indicating a potential upside of 22.64%. Given Oclaro’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Oclaro is more favorable than Calix.

Institutional and Insider Ownership

70.5% of Oclaro shares are held by institutional investors. Comparatively, 64.5% of Calix shares are held by institutional investors. 2.0% of Oclaro shares are held by insiders. Comparatively, 16.5% of Calix shares are held by 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.

Volatility & Risk

Oclaro has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Calix has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Summary

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

Oclaro Company Profile

Oclaro, Inc. is a provider of optical components, modules and subsystems for the core optical transport, service provider, enterprise and data center markets. The Company provides various solutions for optical networks and interconnects driving the next wave of streaming video, cloud computing, application virtualization and other bandwidth-intensive and high-speed applications. The Company’s product offerings include client side transceivers, line side transceivers, tunable laser transmitters, lithium niobate modulators, transponder modules, and discrete lasers and receivers. It designs, manufactures and markets optical components, modules and subsystems that generate, detect, combine and separate light signals in optical communications networks. The Company supplies transmission products at the component level and the module level into 10 gigabits per second (Gb/s), 40 Gb/s and 100 Gb/s communications solutions.

Calix Company Profile

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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