Polycom (NASDAQ: PLCM) and Plantronics (NYSE:PLT) are both small-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Earnings and Valuation
This table compares Polycom and Plantronics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Plantronics||$881.18 million||1.96||$82.59 million||$2.43||21.46|
This is a summary of recent ratings and target prices for Polycom and Plantronics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Plantronics has a consensus target price of $58.00, suggesting a potential upside of 11.24%. Given Plantronics’ higher possible upside, analysts clearly believe Plantronics is more favorable than Polycom.
Plantronics pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Polycom does not pay a dividend. Plantronics pays out 24.7% of its earnings in the form of a dividend.
Insider and Institutional Ownership
92.4% of Polycom shares are owned by institutional investors. Comparatively, 90.9% of Plantronics shares are owned by institutional investors. 0.7% of Polycom shares are owned by insiders. Comparatively, 3.2% of Plantronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Polycom has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Plantronics has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
This table compares Polycom and Plantronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Plantronics beats Polycom on 9 of the 13 factors compared between the two stocks.
Polycom, Inc. (Polycom) offers solutions for voice, video and content sharing and a line of support and service solutions. The Company operates in Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC) geographic segments. The Company’s video, voice and content-management and content-sharing solutions include applications for mobile devices, browser-based video collaboration, cloud-delivered services, conference room systems and home/work office solutions and immersive telepresence. It offers various products and solutions, which include UC Group Systems, UC Platform and UC Personal Devices. UC Group Systems includes group video, group voice and immersive telepresence systems. UC Platform includes universal collaboration servers, virtualization management, resource management, recording and streaming, and remote access technologies that constitute the RealPresence Platform. UC Personal Devices includes group video, group voice and immersive telepresence systems.
Plantronics, Inc. (Plantronics) is engaged in the design, manufacture, and distribution of headsets for business and consumer applications, and other specialty products for the hearing impaired. The Company is a global designer, manufacturer and marketer of communications headsets, telephone headset systems, other communication endpoints and accessories for the business and consumer markets. The Company develops communication products for offices and contact centers, mobile devices, cordless phones, and computers and gaming consoles. Its product categories include Enterprise, which includes corded and cordless communication headsets, audio processors, and telephone systems, and Consumer, which includes Bluetooth and corded products for mobile device applications, personal computer (PC) and gaming headsets, and specialty products marketed for hearing impaired individuals. It offers its products under two brands: Plantronics and Clarity.
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