Viavi Solutions (VIAV) vs. Ciena (CIEN) Head to Head Analysis

Viavi Solutions (NASDAQ: VIAV) and Ciena (NYSE:CIEN) are both mid-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Profitability

This table compares Viavi Solutions and Ciena’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viavi Solutions 10.57% 8.99% 3.44%
Ciena 45.04% 18.32% 7.02%

Volatility and Risk

Viavi Solutions has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, Ciena has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Viavi Solutions and Ciena, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viavi Solutions 0 2 5 0 2.71
Ciena 0 3 18 0 2.86

Viavi Solutions currently has a consensus price target of $12.50, indicating a potential upside of 38.43%. Ciena has a consensus price target of $28.55, indicating a potential upside of 32.56%. Given Viavi Solutions’ higher probable upside, equities research analysts plainly believe Viavi Solutions is more favorable than Ciena.

Institutional & Insider Ownership

92.4% of Viavi Solutions shares are held by institutional investors. 0.6% of Viavi Solutions shares are held by insiders. Comparatively, 1.5% of Ciena shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Viavi Solutions and Ciena’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viavi Solutions $811.40 million 2.53 $166.90 million $0.35 25.80
Ciena $2.80 billion 1.10 $1.26 billion $6.92 3.11

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

Summary

Ciena beats Viavi Solutions on 9 of the 14 factors compared between the two stocks.

Viavi Solutions Company Profile

Viavi Solutions Inc. (Viavi) is a provider of network test, monitoring and assurance solutions to communications service providers, enterprises and their ecosystems. The Company also offers thin film optical coatings, providing light management solutions to anti-counterfeiting, consumer and industrial, government and healthcare and other markets. The Company’s segments include Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP). The NE segment provides testing solutions that access the network to perform build-out and maintenance tasks. The SE segment offers solutions, which are embedded systems that yield network, service and application performance data. The OSP segment provides optical security solutions. The OSP segment’s security offerings for the currency market include Optically Variable Pigment (OVP), Optically Variable Magnetic Pigment (OVMP) and banknote thread substrates.

Ciena Company Profile

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.

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