Harmonic (NASDAQ: HLIT) and Polycom (NASDAQ:PLCM) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.
This table compares Harmonic and Polycom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Harmonic and Polycom’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Harmonic||$405.91 million||0.59||-$72.31 million||($1.01)||-2.92|
Polycom has lower revenue, but higher earnings than Harmonic. Harmonic is trading at a lower price-to-earnings ratio than Polycom, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Harmonic and Polycom, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Harmonic currently has a consensus target price of $5.33, indicating a potential upside of 80.79%. Given Harmonic’s higher possible upside, equities research analysts plainly believe Harmonic is more favorable than Polycom.
Institutional and Insider Ownership
91.4% of Harmonic shares are owned by institutional investors. Comparatively, 92.4% of Polycom shares are owned by institutional investors. 5.5% of Harmonic shares are owned by insiders. Comparatively, 0.7% of Polycom shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Harmonic has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Polycom has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.
Polycom beats Harmonic on 7 of the 11 factors compared between the two stocks.
Harmonic Company Profile
Harmonic Inc. (Harmonic) designs, manufactures and sells video infrastructure products, and system solutions. The Company has two segments: Video and Cable Edge. Harmonic provides technical support and professional services to its customers around the world. The Video segment sells video processing and production, and playout solutions and services to broadcast and media companies, streaming media companies, cable operators, and satellite and telecommunications (telco), and pay television (TV) service providers. Its Cable Edge business sells cable edge solutions and related services to cable operators around the world. The Video segment offers a range of products and solutions, as well as software-based media processing platforms. The Company’s Narrowcast Services Gateway (NSG) products are integrated edge gateway products that integrate routing, multiplexing, scrambling and modulation into a single package for the delivery of narrowcast services to subscribers over cable networks.
Polycom Company Profile
Polycom, Inc. is a United States-based company. The Company is focused on offering solutions for voice, video and content sharing and a line of support and service solutions. The Company’s video, voice and content-management and content-sharing solutions include applications for mobile devices, browser-based video collaboration, cloud-delivered services, conference room systems and home/work office solutions and immersive telepresence. It offers various products and solutions, which include UC Group Systems, UC Platform and UC Personal Devices. UC Group Systems includes group video, group voice and immersive telepresence systems. UC Platform includes universal collaboration servers, virtualization management, resource management, recording and streaming, and remote access technologies that constitute the RealPresence Platform. UC Personal Devices includes group video, group voice and immersive telepresence systems.
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