Ciena (NYSE: CIEN) and Lantronix (NASDAQ:LTRX) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Insider & Institutional Ownership
16.5% of Lantronix shares are held by institutional investors. 1.5% of Ciena shares are held by insiders. Comparatively, 52.4% of Lantronix shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Ciena and Lantronix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Ciena has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Lantronix has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500.
Valuation and Earnings
This table compares Ciena and Lantronix’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ciena||$2.80 billion||1.13||$1.26 billion||$6.92||3.20|
Ciena has higher revenue and earnings than Lantronix. Lantronix is trading at a lower price-to-earnings ratio than Ciena, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Ciena and Lantronix, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ciena currently has a consensus price target of $28.55, suggesting a potential upside of 29.08%. Lantronix has a consensus price target of $4.00, suggesting a potential upside of 60.00%. Given Lantronix’s stronger consensus rating and higher probable upside, analysts plainly believe Lantronix is more favorable than Ciena.
Ciena beats Lantronix on 10 of the 14 factors compared between the two stocks.
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.
Lantronix Company Profile
Lantronix, Inc. is a provider of secure data access and management solutions for Internet of things (IoT) and information technology (IT) assets. The Company organizes its products and solutions into three product lines, including IoT, IT Management and Other. Its IoT products consist of IoT Gateways and IoT Building Blocks. The Company’s IT Management product line includes console management, power management and keyboard video mouse (KVM), products that provide remote out-of-band management (OOBM) access to IT and networking infrastructure deployed in test labs, data centers and server rooms. Its Other product line includes non-focus products, such as the xPrintServer, xSenso and WiBox. Its connectivity solutions serves a range of industries, including data center, medical, security, environmental and government. The Company conducts its business in approximately three geographic regions, including the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific Japan (APJ).
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