Audience (NASDAQ: ADNC) and Oclaro (NASDAQ:OCLR) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Insider & Institutional Ownership

70.4% of Oclaro shares are held by institutional investors. 2.0% of Oclaro shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Audience -95.17% -78.59% -64.91%
Oclaro 21.28% 27.63% 20.69%

Analyst Ratings

This is a summary of current ratings and recommmendations for Audience and Oclaro, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Audience 0 0 0 0 N/A
Oclaro 0 0 10 2 3.17

Oclaro has a consensus target price of $13.33, suggesting a potential upside of 54.68%. Given Oclaro’s higher probable upside, analysts plainly believe Oclaro is more favorable than Audience.

Earnings & Valuation

This table compares Audience and Oclaro’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Audience N/A N/A N/A N/A N/A
Oclaro $600.97 million 2.42 $140.44 million $0.75 11.49

Oclaro has higher revenue and earnings than Audience.

Summary

Oclaro beats Audience on 9 of the 9 factors compared between the two stocks.

About Audience

Audience, Inc. is a provider of voice and audio solutions that improve voice quality and the user experience in mobile devices. The Company’s solutions include hardware-accelerated digital signal processors (DSPs) and audio codecs and associated algorithms for noise suppression in mobile devices. The Company’s platform consists of its purpose-built DSPs and audio codec analog and mixed signal circuits and algorithms for voice isolation and noise suppression. It also provides its AuViD graphical design tools to help original equipment manufacturers (OEMs) design in and tune its products. The Company offers custom voice and audio processors, some with integrated smart audio codecs for device platforms, including smartphones, feature phones and media tablets. These processors are accompanied by its integration tools and support. It offers voice and audio processors, such as eS305, eS325, eS70x, eS75x, eS804 and eS854.

About Oclaro

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.

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