Comparing Ciena Corporation (CIEN) & UTStarcom Holdings Corp (UTSI)
Ciena Corporation (NYSE: CIEN) and UTStarcom Holdings Corp (NASDAQ:UTSI) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.
Institutional and Insider Ownership
25.9% of UTStarcom Holdings Corp shares are owned by institutional investors. 1.5% of Ciena Corporation shares are owned by company insiders. Comparatively, 2.7% of UTStarcom Holdings Corp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of recent recommendations and price targets for Ciena Corporation and UTStarcom Holdings Corp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|UTStarcom Holdings Corp||0||0||0||0||N/A|
Ciena Corporation presently has a consensus price target of $29.50, indicating a potential upside of 40.95%. Given Ciena Corporation’s higher possible upside, research analysts plainly believe Ciena Corporation is more favorable than UTStarcom Holdings Corp.
Earnings & Valuation
This table compares Ciena Corporation and UTStarcom Holdings Corp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ciena Corporation||$2.77 billion||1.08||$361.58 million||$0.92||22.75|
|UTStarcom Holdings Corp||$91.63 million||1.21||$6.11 million||$0.02||157.08|
Ciena Corporation has higher revenue and earnings than UTStarcom Holdings Corp. Ciena Corporation is trading at a lower price-to-earnings ratio than UTStarcom Holdings Corp, indicating that it is currently the more affordable of the two stocks.
This table compares Ciena Corporation and UTStarcom Holdings Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|UTStarcom Holdings Corp||N/A||N/A||N/A|
Risk and Volatility
Ciena Corporation has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, UTStarcom Holdings Corp has a beta of -0.31, suggesting that its share price is 131% less volatile than the S&P 500.
Ciena Corporation beats UTStarcom Holdings Corp on 9 of the 13 factors compared between the two stocks.
About Ciena Corporation
Ciena Corporation is a network strategy and technology company, which provides solutions that enable a range of network operators to adopt communication architectures and deliver an array of services, relied upon by enterprise and consumer end users. It provides equipment, software and services that support the transport, switching, aggregation, service delivery and management of voice, video and data traffic on communications networks. It segments include Networking Platforms; Software and Software-Related Services, and Global Services. The Networking Platforms segment consists of Converged Packet Optical, Packet Networking and Optical Transport product portfolios. The software business is engaged in the development and licensing of element and network management software and software-related services that support its hardware offerings. It offers a suite of consulting and support services that help its customers to design, optimize, deploy and maintain their communications networks.
About UTStarcom Holdings Corp
UTStarcom Holdings Corp. provides broadband products, solution and services. The Company delivers broadband transport and access (both wireless fidelity (Wi-Fi) and fixed line) products and solutions, optimized for mobile backhaul, metro aggregation, broadband access and Wi-Fi data offloading. Its segments include Equipment, which is focused on its equipment sales, including network infrastructure and application products, and Services, which is engaged in providing services and support of its equipment products and also the new operational support segment. The broadband product lines include family of packet transport network (PTN) products based on multi-protocol label switch transport profile (MPLS-TP) and carrier Ethernet (CE) technologies enhanced through in-house software-defined networking (SDN) platform to support the network evolution, and multi services access network (MSAN) platform. Wireless broadband access is represented by end-to-end Carrier Wi-Fi solution.
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