Comparing ViaSat (VSAT) and ARRIS International (ARRS)

ViaSat (NASDAQ: VSAT) and ARRIS International (NASDAQ:ARRS) are both mid-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and target prices for ViaSat and ARRIS International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ViaSat 1 5 4 0 2.30
ARRIS International 0 3 6 0 2.67

ViaSat presently has a consensus target price of $74.00, suggesting a potential upside of 4.53%. ARRIS International has a consensus target price of $33.33, suggesting a potential upside of 42.09%. Given ARRIS International’s stronger consensus rating and higher possible upside, analysts clearly believe ARRIS International is more favorable than ViaSat.

Risk and Volatility

ViaSat has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, ARRIS International has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Earnings & Valuation

This table compares ViaSat and ARRIS International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ViaSat $1.56 billion 2.64 $23.76 million ($0.20) -353.95
ARRIS International $6.83 billion 0.64 $18.10 million $0.87 26.97

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

Profitability

This table compares ViaSat and ARRIS International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ViaSat -0.75% 0.13% 0.08%
ARRIS International 2.51% 14.02% 5.89%

Institutional & Insider Ownership

99.4% of ViaSat shares are held by institutional investors. Comparatively, 87.0% of ARRIS International shares are held by institutional investors. 7.7% of ViaSat shares are held by insiders. Comparatively, 0.9% of ARRIS International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

ARRIS International beats ViaSat on 10 of the 14 factors compared between the two stocks.

About ViaSat

ViaSat, Inc. is engaged in broadband technologies and services. The Company operates through three segments: satellite services, commercial networks and government systems. The satellite services segment provides satellite-based broadband services to consumers, enterprises, commercial airlines and mobile broadband customers primarily in the United States. The commercial networks segment develops and produces a range of end-to-end satellite and wireless communication systems, ground networking equipment and space-to-earth connectivity systems. The government systems segment develops and produces network-centric Internet Protocol (IP)-based fixed and mobile secure government communications systems, products, services and solutions, which are designed to enable the collection and dissemination of real-time digital information between command centers, communications nodes and air defense systems.

About ARRIS International

ARRIS International plc is a media entertainment and data communications solutions provider. The Company operates in two segments: Customer Premises Equipment (CPE), and Network & Cloud (N&C). The Company enables service providers, including cable, telephone, and digital broadcast satellite operators, and media programmers to deliver media, voice and Internet Protocol (IP) data services to their subscribers. It is engaged in offering set-tops, digital video and IP television (IPTV) distribution systems, broadband access infrastructure platforms, and associated data and voice CPE, which it also sells directly to consumers through retail channels. Its solutions are complemented by an array of services, including technical support, repair and refurbishment, and system design and integration. The CPE segment consists of CPE Products-Video and CPE Products-Broadband. The N&C segment consists of Infrastructure Products, Cloud Software and Global Services.

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