Contrasting Corning (NYSE:GLW) & Viavi Solutions (NASDAQ:VIAV)

Corning (NYSE:GLW) and Viavi Solutions (NASDAQ:VIAV) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Volatility and Risk

Corning has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Insider and Institutional Ownership

69.8% of Corning shares are owned by institutional investors. Comparatively, 95.5% of Viavi Solutions shares are owned by institutional investors. 0.3% of Corning shares are owned by company insiders. Comparatively, 1.8% of Viavi Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Corning and Viavi Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corning	0	3	11	1	2.87
Viavi Solutions	1	2	7	0	2.60

Corning presently has a consensus price target of $91.64, indicating a potential upside of 9.50%. Viavi Solutions has a consensus price target of $16.89, indicating a potential downside of 3.82%. Given Corning’s stronger consensus rating and higher probable upside, equities analysts clearly believe Corning is more favorable than Viavi Solutions.

Earnings & Valuation

This table compares Corning and Viavi Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corning	$13.12 billion	5.47	$506.00 million	$1.58	52.96
Viavi Solutions	$1.15 billion	3.42	$34.80 million	$0.07	250.86

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Corning	9.16%	18.12%	7.28%
Viavi Solutions	1.33%	10.68%	4.14%

Summary

Corning beats Viavi Solutions on 12 of the 15 factors compared between the two stocks.

About Corning

Corning Incorporated engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses in the United States and internationally. The company's Display Technologies segment offers glass substrates for flat panel displays, including liquid crystal displays and organic light-emitting diodes that are used in televisions, notebook computers, desktop monitors, tablets, and handheld devices. Its Optical Communications segment provides optical fibers and cables; and hardware and equipment products, such as cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories for the telecommunications industry, businesses, governments, and individuals. The company's Specialty Materials segment manufactures products that offer material formulations for glass, glass ceramics, crystals, precision metrology instruments, and software, as well as glass wafers and substrates, tinted sunglasses, and radiation shielding products for various markets comprising mobile consumer electronics, semiconductor equipment optics and consumables, aerospace and defense optics, radiation shielding products, sunglasses, and telecommunications components. Its Environmental Technologies segment provides ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The company's Life Sciences segment offers laboratory products, including consumables, such as plastic vessels, liquid handling plastics, specialty surfaces, cell culture media, and serum, as well as general labware, and glassware and equipment under the Corning, Pyrex, Falcon, and Axygen brands. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.

About Viavi Solutions

Viavi Solutions, Inc. engages in the provision of network test, monitoring, and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It operates through the following segments: Network Enablement, Service Enablement, and Optical Security and Performance. The Network Enablement segment offers an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. The Service Enablement segment covers solutions and services primarily for communication service providers, and enterprises that deliver and/or operate broadband and IP networks (fixed and mobile) supporting voice, video, and data services as well as a wide range of applications. The Optical Security and Performance segment leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell products targeting anti-counterfeiting, consumer and industrial, government, healthcare, and other markets. The company was founded in 1979 and is headquartered in Chandler, AZ.