Head to Head Analysis: Aerohive Networks (NYSE:HIVE) versus Regal Beloit Corporation (RBC)

Aerohive Networks (NYSE: HIVE) and Regal Beloit Corporation (NYSE:RBC) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitabiliy, dividends, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aerohive Networks	-20.12%	-109.99%	-22.33%
Regal Beloit Corporation	6.46%	9.80%	4.62%

Insider & Institutional Ownership

53.8% of Aerohive Networks shares are held by institutional investors. Comparatively, 93.9% of Regal Beloit Corporation shares are held by institutional investors. 26.2% of Aerohive Networks shares are held by insiders. Comparatively, 2.2% of Regal Beloit Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Regal Beloit Corporation pays an annual dividend of $1.04 per share and has a dividend yield of 1.3%. Aerohive Networks does not pay a dividend. Regal Beloit Corporation pays out 22.6% of its earnings in the form of a dividend. Regal Beloit Corporation has increased its dividend for 7 consecutive years.

Valuation and Earnings

This table compares Aerohive Networks and Regal Beloit Corporation’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Aerohive Networks	$166.05 million	1.21	-$27.46 million	($0.65)	-7.09
Regal Beloit Corporation	$3.22 billion	1.15	$500.30 million	$4.61	17.92

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Aerohive Networks and Regal Beloit Corporation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aerohive Networks	0	3	4	0	2.57
Regal Beloit Corporation	0	6	3	0	2.33

Aerohive Networks presently has a consensus price target of $6.29, indicating a potential upside of 36.44%. Regal Beloit Corporation has a consensus price target of $81.40, indicating a potential downside of 1.45%. Given Aerohive Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Aerohive Networks is more favorable than Regal Beloit Corporation.

Volatility & Risk

Aerohive Networks has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Regal Beloit Corporation has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Summary

Regal Beloit Corporation beats Aerohive Networks on 10 of the 16 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.

Regal Beloit Corporation Company Profile

Regal Beloit Corporation is a manufacturer of electric motors, electrical motion controls, power generation and power transmission products. The Company operates through three segments: the Commercial and Industrial Systems segment, with its principal line of business in medium and large electric motors, power generation products, high-performance drives and controls and capacitors; the Climate Solutions segment, with its principal line of business in small motors, controls and air moving products, and the Power Transmission Solutions segment, with its principal line of business in power transmission gearing, hydraulic pump drives, open gearing and specialty mechanical products which control motion and torque. It sells its products directly to original equipment manufacturers (OEMs), distributors and end users. It operates distribution facilities in Plainfield, Indiana; McAllen, Texas; LaVergne, Tennessee, and Florence, Kentucky.