Contrasting NeoPhotonics (NPTN) & Aquantia (AQ)

NeoPhotonics (NYSE: NPTN) and Aquantia (NYSE:AQ) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Valuation & Earnings

This table compares NeoPhotonics and Aquantia’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NeoPhotonics $411.42 million 0.71 -$200,000.00 ($0.87) -7.69
Aquantia $86.67 million 4.23 -$440,000.00 N/A N/A

NeoPhotonics has higher revenue and earnings than Aquantia.

Analyst Recommendations

This is a summary of recent ratings and target prices for NeoPhotonics and Aquantia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NeoPhotonics 0 3 5 1 2.78
Aquantia 0 0 5 0 3.00

NeoPhotonics presently has a consensus price target of $8.67, indicating a potential upside of 29.55%. Aquantia has a consensus price target of $14.80, indicating a potential upside of 35.28%. Given Aquantia’s stronger consensus rating and higher possible upside, analysts plainly believe Aquantia is more favorable than NeoPhotonics.

Profitability

This table compares NeoPhotonics and Aquantia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NeoPhotonics -11.37% -13.61% -7.46%
Aquantia N/A N/A N/A

Insider & Institutional Ownership

81.1% of NeoPhotonics shares are held by institutional investors. 17.3% of NeoPhotonics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Aquantia beats NeoPhotonics on 6 of the 11 factors compared between the two stocks.

NeoPhotonics Company Profile

NeoPhotonics Corporation develops, manufactures and markets optoelectronic products that transmit, receive and switch digital optical signals for communications networks. The Company develops and manufactures Transmitter Products, Receiver Products and Switch Products that are used in ultra-high speed digital optical communications, high speed switching and provisioning, and access connections for wireless and fiber-to-the-home communications networks. The Company’s products are categorized into groups, including High Speed Products and Network Products and Solutions. The High Speed Products includes products designed for 100G and beyond for telecommunication and datacenter or content provider networks and applications. Its Network Products and Solutions consist of various products designed for applications below 100G, and include 40G products. The Company combines its transmitter and receiver products into Transceiver modules.

Aquantia Company Profile

Aquantia Corp is engaged in developing and supplying connectivity solutions for data centers, enterprise and wireless local area network (WLAN) applications. The Company offers 10 gigabyte Ethernet and Multi-Gig Ethernet Silicon product for data center and cloud, and the enterprise and WLAN markets. For data center and cloud market, it offers 10GBASE-T PHYs product line, which includes 28 nanometer technology products, such as AQ2402, AQ2403, AQ2203 and AQ2104; 40 nanometer technology products, such as AQ1402, AQ1202 and AQ1103, and 90 nanometer technology product, AQ1002. For enterprise and WLAN market, it offers AQrate product line, including 28 nanometer technology products, such as AQR405, AQR205 and AQR105. Its AQrate product line consists of single, dual and quad-port configurations for applications ranging from client personal computers and others for single and dual-port devices, to Enterprise and Campus Ethernet switches for the quad-port versions.

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