Acacia Communications (NASDAQ: ACIA) and Calix (NYSE:CALX) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Insider & Institutional Ownership

81.8% of Acacia Communications shares are owned by institutional investors. Comparatively, 64.5% of Calix shares are owned by institutional investors. 37.1% of Acacia Communications shares are owned by company insiders. Comparatively, 16.5% of Calix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Acacia Communications and Calix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acacia Communications 29.65% 34.46% 28.99%
Calix -12.72% -30.33% -17.39%

Valuation & Earnings

This table compares Acacia Communications and Calix’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Acacia Communications $471.30 million 3.90 $112.56 million $3.38 13.85
Calix $496.63 million 0.50 -$61.63 million ($1.27) -3.86

Acacia Communications has higher revenue, but lower earnings than Calix. Calix is trading at a lower price-to-earnings ratio than Acacia Communications, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Acacia Communications and Calix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acacia Communications 0 3 7 0 2.70
Calix 0 2 1 0 2.33

Acacia Communications currently has a consensus target price of $53.63, indicating a potential upside of 14.56%. Calix has a consensus target price of $6.50, indicating a potential upside of 32.65%. Given Calix’s higher probable upside, analysts plainly believe Calix is more favorable than Acacia Communications.

Risk & Volatility

Acacia Communications has a beta of 3.48, indicating that its stock price is 248% more volatile than the S&P 500. Comparatively, Calix has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Summary

Acacia Communications beats Calix on 11 of the 13 factors compared between the two stocks.

Acacia Communications Company Profile

Acacia Communications, Inc. provides high-speed coherent interconnect products. The Company’s products include a series of low-power coherent digital signal processor application-specific integrated circuits (DSP ASICs), and silicon photonic integrated circuits (silicon PICs), which it has integrated into families of optical interconnect modules with transmission speeds ranging from 100 to 400 gigabits per second (Gbps) for use in long-haul, metro and inter-data center markets. The Company is also developing optical interconnect modules that will enable transmission speeds of one terabit (1,000 gigabits) per second and above. The Company’s modules perform a majority of the digital signal processing and optical functions in optical interconnects. The Company’s coherent DSP ASICs are manufactured using complementary metal oxide semiconductor (CMOS), and its silicon PICs are manufactured using a CMOS-compatible process.

Calix Company Profile

Calix, Inc. provides broadband communications access systems and software for fiber- and copper-based network architectures that enable communications service providers (CSPs), to transform their networks and connect to their residential and business subscribers. The Company enables CSPs to provide various services, from basic voice and data to advanced broadband services, over legacy and next-generation access networks. It develops and sells carrier-class hardware and cloud products. Its portfolio consists of three core systems and/or nodes: E-Series access systems and nodes (E-Series systems and nodes), B6 access nodes (B-Series nodes), and the C7 multiservice, multiprotocol access system (C-Series system). These systems and nodes are complemented by the P-Series optical network terminals and residential gateways, the GigaFamily of GigaCenters, GigaHubs, and GigaPoints, the Calix Management System, OpenLink Cable software and Compass Cloud family of software-as-a-service products.

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