Envivio (NASDAQ: ENVI) and Lantronix (NASDAQ:LTRX) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares Envivio and Lantronix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Envivio -5.31% -7.98% -4.76%
Lantronix -1.83% 2.39% 1.64%

Institutional & Insider Ownership

16.5% of Lantronix shares are owned by institutional investors. 52.4% of Lantronix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Envivio and Lantronix’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Envivio N/A N/A N/A ($0.30) N/A
Lantronix $44.73 million 0.78 -$270,000.00 ($0.05) -38.80

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Envivio and Lantronix, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Envivio 0 0 0 0 N/A
Lantronix 0 0 1 0 3.00

Lantronix has a consensus price target of $4.00, suggesting a potential upside of 106.19%.

Summary

Lantronix beats Envivio on 8 of the 8 factors compared between the two stocks.

About Envivio

Envivio, Inc. is a provider of software-based Internet protocol (IP) video processing and distribution solutions that enable the delivery of video to consumers. The Company’s solutions enable service providers and content providers to offer video across a range of video formats, networks, consumer devices and operating systems. The Company enables service providers and content providers to deliver linear broadcast and on-demand video services to their customers via various screens, such as televisions, tablets, smartphones, laptops, personal computers (PCs) and gaming devices. The Company’s product line includes Muse, Halo, Envivio appliances and Guru. Its software-based solution delivers a converged multi-screen service for traditional Pay-television, and across mobile, broadband and managed networks. The Company’s solution enables the transport of video through different networks, such as broadband and mobile networks, or traditional cable and satellite broadcast networks.

About Lantronix

Lantronix, Inc. is a provider of secure data access and management solutions for Internet of things (IoT) and information technology (IT) assets. The Company organizes its products and solutions into three product lines, including IoT, IT Management and Other. Its IoT products consist of IoT Gateways and IoT Building Blocks. The Company’s IT Management product line includes console management, power management and keyboard video mouse (KVM), products that provide remote out-of-band management (OOBM) access to IT and networking infrastructure deployed in test labs, data centers and server rooms. Its Other product line includes non-focus products, such as the xPrintServer, xSenso and WiBox. Its connectivity solutions serves a range of industries, including data center, medical, security, environmental and government. The Company conducts its business in approximately three geographic regions, including the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific Japan (APJ).

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