Sprint Corporation (NYSE: S) and Meru Networks (NASDAQ:MERU) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitabiliy.
Insider & Institutional Ownership
14.3% of Sprint Corporation shares are held by institutional investors. 0.2% of Sprint Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and target prices for Sprint Corporation and Meru Networks, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sprint Corporation | 6 | 10 | 3 | 0 | 1.84 |
| Meru Networks | 0 | 0 | 0 | 0 | N/A |
Sprint Corporation presently has a consensus price target of $9.86, suggesting a potential upside of 13.29%. Given Sprint Corporation’s higher possible upside, analysts clearly believe Sprint Corporation is more favorable than Meru Networks.
Profitability
This table compares Sprint Corporation and Meru Networks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sprint Corporation | -2.08% | -3.66% | -0.84% |
| Meru Networks | -46.15% | N/A | -86.56% |
Earnings and Valuation
This table compares Sprint Corporation and Meru Networks’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Sprint Corporation | $33.49 billion | 1.04 | $11.31 billion | ($0.18) | -48.33 |
| Meru Networks | N/A | N/A | N/A | N/A | N/A |
Sprint Corporation has higher revenue and earnings than Meru Networks.
Summary
Sprint Corporation beats Meru Networks on 7 of the 8 factors compared between the two stocks.
About Sprint Corporation
Sprint Corporation (Sprint) is a holding company. The Company, along with its subsidiaries, is a communications company offering a range of wireless and wireline communications products and services that are designed to meet the needs of consumers, businesses, government subscribers and resellers. It operates through two segments: Wireless and Wireline. The Company offers wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale basis. The Wireline segment provides voice, data and Internet Protocol (IP) communication services to its Wireless segment. The Company offers wireless and wireline services to subscribers in approximately 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless on its wireless networks utilizing various technologies.
About Meru Networks
Meru Networks, Inc. (Meru) develops and markets a virtualized Wireless Local Area Network (WLAN) solution. The Company’s solution is built around its System Director Operating System, which runs on its controllers and access points. The Company offers additional products designed to deliver network management, diagnostics and security. The Company also offers support services related to its products, professional services, and training. Its products and services are sold through value added resellers, and distributors, as well as its sales force. Its System Director Operating System forms the core of its virtualized WLAN solution. It provides a family of controllers that run its System Director Operating System and work in conjunction with its access points. Its Wireless Fidelity (Wi-Fi) certified access points provide network connectivity for wireless devices. Its bring-your-own-device (BYOD) and policy management solutions are designed to automate secure guest access.
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