Critical Comparison: Ixia (XXIA) and Alcatel Lucent (ALU)

Ixia (NASDAQ: XXIA) and Alcatel Lucent (NYSE:ALU) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Valuation & Earnings

This table compares Ixia and Alcatel Lucent’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ixia N/A N/A N/A ($0.41) -47.93
Alcatel Lucent N/A N/A N/A $0.08 43.25

Ixia is trading at a lower price-to-earnings ratio than Alcatel Lucent, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

63.6% of Ixia shares are held by institutional investors. 24.4% of Ixia shares are held by 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 Ixia and Alcatel Lucent’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ixia -29.28% -28.71% -19.71%
Alcatel Lucent 14.83% 86.14% 10.96%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ixia and Alcatel Lucent, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ixia 0 3 1 0 2.25
Alcatel Lucent 0 0 0 0 N/A

Ixia currently has a consensus target price of $19.65, suggesting a potential upside of 0.00%. Given Ixia’s higher possible upside, analysts plainly believe Ixia is more favorable than Alcatel Lucent.

Summary

Alcatel Lucent beats Ixia on 5 of the 9 factors compared between the two stocks.

Ixia Company Profile

Ixia is a provider of physical and virtual network application performance and security resilience solutions. The Company’s product solutions consist of its hardware platforms, software applications and services, including warranty and maintenance offerings. The Company helps its customers to validate the performance and security resilience of their applications and networks. The Company offers network test hardware platforms with interchangeable interfaces, using a common set of applications and Application Programing Interfaces (APIs). The Company provides its solutions to network equipment manufacturers (NEMs), service providers, and enterprise and government organizations. The Company’s product solutions consist of its hardware platforms, such as chassis, interface cards and appliances, software application tools, and services, including its warranty and maintenance offerings and professional services.

Alcatel Lucent Company Profile

Alcatel Lucent SA is a provider of Internet protocol (IP) networking, ultra-broadband access and cloud technology solutions. The Company operates through two segments for the networks business. The Ultra Broadband Networks segment consists of Mobile Networks and Fixed Networks business groups. The IP Networks and Applications segment consists of Internet protocol (IP)/Optical Networks and Applications and Analytics business groups. Its other segment consists of businesses run as separate operations (Alcatel Submarine Networks and Radio Frequency Systems (RFS)). The Company offers a range of solutions, including Communications and collaboration, IP Core Routing, IP/optical integration, long term evolution (LTE) Ultra-Broadband, Software-defined networking and Vplus. The Company offers a range of consulting, managed, maintenance and professional services, including Bell Labs Consulting and Build, Operate and Manage (BOM) Solution for Mobility Networks. The main shareholder is Nokia.

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