Aerohive Networks (NYSE: HIVE) and Ixia (NASDAQ:XXIA) are both small-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Insider & Institutional Ownership

46.1% of Aerohive Networks shares are held by institutional investors. Comparatively, 63.6% of Ixia shares are held by institutional investors. 26.2% of Aerohive Networks shares are held by company insiders. Comparatively, 24.4% of Ixia shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Aerohive Networks and Ixia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 2 4 0 2.67
Ixia 0 3 1 0 2.25

Aerohive Networks presently has a consensus price target of $6.31, suggesting a potential upside of 55.04%. Ixia has a consensus price target of $19.65, suggesting a potential upside of 0.00%. Given Aerohive Networks’ stronger consensus rating and higher probable upside, analysts plainly believe Aerohive Networks is more favorable than Ixia.

Valuation & Earnings

This table compares Aerohive Networks and Ixia’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerohive Networks $169.82 million 1.28 -$36.91 million ($0.51) -7.98
Ixia N/A N/A N/A ($0.41) -47.93

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

Profitability

This table compares Aerohive Networks and Ixia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aerohive Networks -17.00% -103.45% -18.90%
Ixia -29.28% -28.71% -19.71%

Summary

Aerohive Networks beats Ixia on 8 of the 11 factors compared between the two stocks.

Aerohive Networks Company Profile

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

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.

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