Mitel Networks (NASDAQ: HLIT) and Harmonic (NASDAQ:HLIT) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Risk & Volatility
Mitel Networks has a beta of 2.29, suggesting that its share price is 129% more volatile than the S&P 500. Comparatively, Harmonic has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.
This table compares Mitel Networks and Harmonic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
81.6% of Mitel Networks shares are owned by institutional investors. Comparatively, 86.5% of Harmonic shares are owned by institutional investors. 5.6% of Mitel Networks shares are owned by insiders. Comparatively, 6.2% of Harmonic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Mitel Networks and Harmonic, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mitel Networks presently has a consensus price target of $13.05, suggesting a potential upside of 18.53%. Harmonic has a consensus price target of $6.75, suggesting a potential upside of 26.76%. Given Harmonic’s stronger consensus rating and higher possible upside, analysts clearly believe Harmonic is more favorable than Mitel Networks.
Valuation and Earnings
This table compares Mitel Networks and Harmonic’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mitel Networks||$1.06 billion||1.28||-$49.70 million||($0.40)||-27.53|
|Harmonic||$358.25 million||1.28||-$82.95 million||($0.54)||-9.86|
Mitel Networks has higher revenue and earnings than Harmonic. Mitel Networks is trading at a lower price-to-earnings ratio than Harmonic, indicating that it is currently the more affordable of the two stocks.
Mitel Networks beats Harmonic on 7 of the 13 factors compared between the two stocks.
Mitel Networks Company Profile
Mitel Networks Corporation provides cloud and on-site business communications and collaboration software, services, and solutions. It operates in two segments, Enterprise and Cloud. The Enterprise segment sells and supports products and services for premise-based customers, including its premise-based IP and TDM telephony platforms; desktop devices, and unified communications and collaborations (UCC); and contact center applications that are deployed on the customer's premise under the MiVoice brand. The Cloud segment offers retail cloud services, such as UCC applications, voice and data telecommunications, and desktop devices that provide hosted cloud and related services directly to the end users under the MiCloud brand. It also provides wholesale services comprising hosted PBX, voice and video calling, SIP trunking, voicemail, call center, audio conferencing, and video and Web collaboration services to service providers under the Powered by Mitel brand. The company sells its solutions through direct and indirect channels, as well as through strategic technology partnerships in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Mitel Networks Corporation was incorporated in 2001 and is headquartered in Ottawa, Canada.
Harmonic Company Profile
Harmonic Inc. designs, manufactures, and sells video infrastructure products and system solutions worldwide. Its products enable customers to create, prepare, and deliver a range of video and broadband services to consumer devices, including televisions, personal computers, laptops, tablets, and smart phones. The company operates in two segments, Video and Cable Edge. The Video segment sells video processing, and production and playout solutions and services to cable operators, and satellite and telecommunications Pay-TV service providers, as well as to broadcast and media companies, including streaming new media companies. This segment's video processing solutions include network management and application software, and hardware products, such as cloud media processing, broadcast and distribution encoders, contribution encoders, multiscreen transcoders and stream processing systems, multiscreen delivery, decoders and descramblers, and video servers. This segment also provides video-optimized storage systems; and unified video playout and processing software-as-a-service solutions. The Cable Edge segment offers cable edge solutions and related services, including CableOS software-based converged cable access platform solutions; and narrowcast services gateway products primarily to cable operators. The company also provides technical support and professional services, such as maintenance and support, consulting, implementation, program management, technical design and planning, building and site preparation, integration and equipment installation, system testing, and training. Harmonic Inc. sells its products through its direct sales force, as well as through independent resellers and systems integrators. The company was founded in 1988 and is headquartered in San Jose, California.
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