Silicom (NASDAQ: SILC) and A10 Networks (NYSE:ATEN) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.
Volatility and Risk
Silicom has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, A10 Networks has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
This is a breakdown of current ratings for Silicom and A10 Networks, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Silicom presently has a consensus target price of $50.00, indicating a potential upside of 38.31%. A10 Networks has a consensus target price of $7.75, indicating a potential upside of 27.89%. Given Silicom’s stronger consensus rating and higher possible upside, analysts plainly believe Silicom is more favorable than A10 Networks.
This table compares Silicom and A10 Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
35.0% of Silicom shares are held by institutional investors. Comparatively, 61.9% of A10 Networks shares are held by institutional investors. 25.4% of Silicom shares are held by insiders. Comparatively, 31.6% of A10 Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Silicom and A10 Networks’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Silicom||$125.69 million||2.17||$21.71 million||N/A||N/A|
|A10 Networks||$230.00 million||1.86||-$20.94 million||($0.30)||-20.20|
Silicom has higher earnings, but lower revenue than A10 Networks.
Silicom beats A10 Networks on 9 of the 12 factors compared between the two stocks.
Silicom Company Profile
Silicom Ltd., together with its subsidiaries, designs, manufactures, markets, and supports networking and data infrastructure solutions for a range of servers, server based systems, and communications devices in North America, Europe, and the Asia Pacific. It offers server networking interface cards with and without bypass for the server networking industry. The company also provides intelligent and programmable cards, including redirector cards; encryption and data compression hardware acceleration cards; time stamping and full field programmable gate array (FPGA) based network capture and mobile OSS distribution solutions; network processor acceleration cards; FPGA based ultra-low latency solutions; and compute blades, which offer general compute capability in networking intensive environment. In addition, it offers bypass switches and intelligent bypass switches; server to appliance converter products that enable standard servers to be configured as network appliances with front networking ports; and CPE/edge/low end appliance units. The company sells its products to original equipment manufacturers. Silicom Ltd. was founded in 1987 and is headquartered in Kfar Sava, Israel.
A10 Networks Company Profile
A10 Networks, Inc. provides software and hardware solutions in the United States, Japan, and internationally. The company's products are built on advanced core operating system platform. It offers application delivery controllers that provide advanced server load balancing; lightning application delivery service, a cloud-native software-as-a-service platform designed to boost the delivery and security of applications and micro services; and carrier grade networking address translation product that offer network address and protocol translation services for service provider networks. The company also provides threat protection systems for the protection of networks and server resources against massive distributed denial of service attacks; secure sockets layer insight that decrypts secure sockets layer-encrypted traffic and forwards it to a third-party security device, such as a firewall, for deep packet inspection; and convergent firewall, which consolidates multiple critical security capabilities in one package by consolidating multiple security and networking functions in a single appliance. Its solutions enable cloud providers, Web-scale companies, service providers, government organizations, and enterprises to secure and optimize the performance of their data center and cloud applications; and secure their users, applications, and infrastructure from Internet, Web, and network threats. The company delivers its solutions on optimized hardware appliances, bare metal software, virtual appliances, and cloud-native software. It serves telecommunications, technology, industrial, retail, financial, gaming, and education industries. The company markets its products through sales organizations, as well as distribution channel partners, including distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California.
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