Aerohive Networks (NYSE: HIVE) and InterDigital (NASDAQ:IDCC) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Earnings & Valuation

This table compares Aerohive Networks and InterDigital’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Aerohive Networks $169.82 million 1.62 -$36.91 million ($0.50) -10.26
InterDigital $665.85 million 3.87 $309.00 million $7.24 10.26

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

Analyst Ratings

This is a summary of recent ratings and price targets for Aerohive Networks and InterDigital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 1 4 0 2.80
InterDigital 0 2 2 0 2.50

Aerohive Networks presently has a consensus price target of $6.31, suggesting a potential upside of 23.00%. InterDigital has a consensus price target of $91.33, suggesting a potential upside of 23.01%. Given InterDigital’s higher probable upside, analysts plainly believe InterDigital is more favorable than Aerohive Networks.

Dividends

InterDigital pays an annual dividend of $1.40 per share and has a dividend yield of 1.9%. Aerohive Networks does not pay a dividend. InterDigital pays out 19.3% of its earnings in the form of a dividend.

Profitability

This table compares Aerohive Networks and InterDigital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aerohive Networks -17.00% -103.45% -18.90%
InterDigital 42.94% 32.77% 14.02%

Volatility & Risk

Aerohive Networks has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, InterDigital has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Insider & Institutional Ownership

47.2% of Aerohive Networks shares are owned by institutional investors. Comparatively, 73.1% of InterDigital shares are owned by institutional investors. 26.2% of Aerohive Networks shares are owned by company insiders. Comparatively, 1.9% of InterDigital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

InterDigital beats Aerohive Networks on 10 of the 15 factors compared between the two stocks.

About Aerohive Networks

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

About InterDigital

InterDigital, Inc. designs and develops technologies for wireless communications. The Company is focused on three technology areas: cellular wireless technology, Internet of things (IoT) technology, and, through its Hillcrest Laboratories, Inc. (Hillcrest Labs) subsidiary, sensor and sensor fusion technology. It offers a range of technologies that are used in digital cellular and wireless products and networks, including second generation (2G), third generation (3G), fourth generation (4G) and IEEE 802-related products and networks. Products incorporating its inventions include mobile devices, such as cellular phones, tablets, notebook computers and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; components, dongles and modules for wireless devices, and IoT devices and software platforms. The Company is developing a range of technologies in the areas of video compression and delivery, security, analytics, and other areas.

Receive News & Ratings for Aerohive Networks Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Aerohive Networks Inc. and related companies with MarketBeat.com's FREE daily email newsletter.