UTStarcom Holdings Corp (NASDAQ: UTSI) and Arista Networks (NYSE:ANET) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares UTStarcom Holdings Corp and Arista Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UTStarcom Holdings Corp N/A N/A N/A
Arista Networks 21.74% 22.64% 14.49%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for UTStarcom Holdings Corp and Arista Networks, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UTStarcom Holdings Corp 0 0 0 0 N/A
Arista Networks 0 13 18 0 2.58

Arista Networks has a consensus price target of $168.89, indicating a potential downside of 11.64%. Given Arista Networks’ higher possible upside, analysts clearly believe Arista Networks is more favorable than UTStarcom Holdings Corp.

Earnings & Valuation

This table compares UTStarcom Holdings Corp and Arista Networks’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
UTStarcom Holdings Corp $80.18 million 1.27 $535,000.00 $0.02 144.07
Arista Networks $1.36 billion 10.19 $350.69 million $3.85 49.65

Arista Networks has higher revenue and earnings than UTStarcom Holdings Corp. Arista Networks is trading at a lower price-to-earnings ratio than UTStarcom Holdings Corp, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

25.9% of UTStarcom Holdings Corp shares are held by institutional investors. Comparatively, 59.3% of Arista Networks shares are held by institutional investors. 2.7% of UTStarcom Holdings Corp shares are held by company insiders. Comparatively, 28.1% of Arista Networks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

UTStarcom Holdings Corp has a beta of -0.3, meaning that its share price is 130% less volatile than the S&P 500. Comparatively, Arista Networks has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Summary

Arista Networks beats UTStarcom Holdings Corp on 12 of the 13 factors compared between the two stocks.

About UTStarcom Holdings Corp

UTStarcom Holdings Corp. provides broadband products, solution and services. The Company delivers broadband transport and access (both wireless fidelity (Wi-Fi) and fixed line) products and solutions, optimized for mobile backhaul, metro aggregation, broadband access and Wi-Fi data offloading. Its segments include Equipment, which is focused on its equipment sales, including network infrastructure and application products, and Services, which is engaged in providing services and support of its equipment products and also the new operational support segment. The broadband product lines include family of packet transport network (PTN) products based on multi-protocol label switch transport profile (MPLS-TP) and carrier Ethernet (CE) technologies enhanced through in-house software-defined networking (SDN) platform to support the network evolution, and multi services access network (MSAN) platform. Wireless broadband access is represented by end-to-end Carrier Wi-Fi solution.

About Arista Networks

Arista Networks, Inc. is a supplier of cloud networking solutions that use software innovations to address the needs of Internet companies, cloud service providers and data centers for enterprise support. It develops, markets and sells cloud networking solutions, which consist of its Gigabit Ethernet switches and related software. The Company’s cloud networking solutions consist of its Extensible Operating System (EOS), a set of network applications and its Ethernet switching and routing platforms. The programmability of EOS has allowed it to create a set of software applications that address the requirements of cloud networking, including workflow automation, network visibility and analytics, and has also allowed it to integrate with a range of third-party applications for virtualization, management, automation, orchestration and network services. EOS supports cloud and virtualization solutions, including VMware NSX, Microsoft System Center and other cloud management frameworks.

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