Polycom (NASDAQ: PLCM) and Harmonic (NASDAQ:HLIT) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.
This is a summary of recent ratings and target prices for Polycom and Harmonic, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings & Valuation
This table compares Polycom and Harmonic’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Harmonic||$358.25 million||0.87||-$82.95 million||($0.85)||-4.35|
Polycom has higher earnings, but lower revenue 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.
Insider and Institutional Ownership
92.4% of Polycom shares are held by institutional investors. Comparatively, 91.8% of Harmonic shares are held by institutional investors. 0.7% of Polycom shares are held by company insiders. Comparatively, 5.5% of Harmonic shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Polycom and Harmonic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Polycom has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Harmonic has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.
Polycom beats Harmonic on 7 of the 11 factors compared between the two stocks.
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.
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.
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