Reviewing Lantronix (LTRX) and Infinera Corp. (INFN)
Lantronix (NASDAQ: LTRX) and Infinera Corp. (NASDAQ:INFN) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
This is a summary of recent recommendations and price targets for Lantronix and Infinera Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lantronix currently has a consensus target price of $4.00, suggesting a potential upside of 91.39%. Infinera Corp. has a consensus target price of $11.82, suggesting a potential upside of 39.86%. Given Lantronix’s stronger consensus rating and higher possible upside, equities analysts clearly believe Lantronix is more favorable than Infinera Corp..
Earnings and Valuation
This table compares Lantronix and Infinera Corp.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Infinera Corp.||$718.84 million||1.74||-$60.74 million||($0.90)||-9.39|
Lantronix has higher revenue, but lower earnings than Infinera Corp.. Lantronix is trading at a lower price-to-earnings ratio than Infinera Corp., indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
17.6% of Lantronix shares are owned by institutional investors. Comparatively, 86.7% of Infinera Corp. shares are owned by institutional investors. 52.0% of Lantronix shares are owned by insiders. Comparatively, 2.9% of Infinera Corp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Lantronix has a beta of -0.15, indicating that its stock price is 115% less volatile than the S&P 500. Comparatively, Infinera Corp. has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.
This table compares Lantronix and Infinera Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Lantronix beats Infinera Corp. on 8 of the 13 factors compared between the two stocks.
Lantronix, Inc. is a provider of secure data access and management solutions for Internet of things (IoT) and information technology (IT) assets. The Company organizes its products and solutions into three product lines, including IoT, IT Management and Other. Its IoT products consist of IoT Gateways and IoT Building Blocks. The Company’s IT Management product line includes console management, power management and keyboard video mouse (KVM), products that provide remote out-of-band management (OOBM) access to IT and networking infrastructure deployed in test labs, data centers and server rooms. Its Other product line includes non-focus products, such as the xPrintServer, xSenso and WiBox. Its connectivity solutions serves a range of industries, including data center, medical, security, environmental and government. The Company conducts its business in approximately three geographic regions, including the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific Japan (APJ).
About Infinera Corp.
Infinera Corporation provides optical transport networking equipment, software and services to telecommunications service providers, Internet content providers (ICPs), cable providers, wholesale and enterprise carriers, research and education institutions, enterprise customers and government entities across the globe. The Company’s portfolio consists of the Infinera DTN-X Family, the Infinera DTN platform, the Infinera Cloud Xpress Family, the Infinera XTM Series, the Infinera XTG Series and the Infinera FlexILS platform, addressing long-haul, subsea and metro networks end-to-end. Its technology includes Infinera Intelligent Transport Network Architecture, Infinera Photonic Integrated Circuits, Infinera FlexCoherent Processor, Super-Channels, Sliceable Photonics, Disaggregation, Integrated Digital Switching, Infinera Instant Bandwidth, Infinera Packet-Optical Transport, Multi-layer Switching and Optimization, and Management, Control and Security.
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