MRV Communications (NASDAQ: MRVC) and Rada Electronics Industries Limited (NASDAQ:RADA) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Volatility & Risk

MRV Communications has a beta of -1.88, suggesting that its share price is 288% less volatile than the S&P 500. Comparatively, Rada Electronics Industries Limited has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Institutional and Insider Ownership

40.9% of MRV Communications shares are held by institutional investors. Comparatively, 3.2% of Rada Electronics Industries Limited shares are held by institutional investors. 5.5% of MRV Communications shares are held by insiders. Comparatively, 1.0% of Rada Electronics Industries Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares MRV Communications and Rada Electronics Industries Limited’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
MRV Communications N/A N/A N/A ($1.30) -7.68
Rada Electronics Industries Limited $12.82 million 6.85 -$4.91 million ($0.05) -58.60

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

Profitability

This table compares MRV Communications and Rada Electronics Industries Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MRV Communications -10.63% -30.83% -13.90%
Rada Electronics Industries Limited -3.41% -6.38% -3.36%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MRV Communications and Rada Electronics Industries Limited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MRV Communications 0 0 1 0 3.00
Rada Electronics Industries Limited 0 0 0 0 N/A

MRV Communications presently has a consensus target price of $14.00, suggesting a potential upside of 40.28%. Given MRV Communications’ higher probable upside, equities analysts clearly believe MRV Communications is more favorable than Rada Electronics Industries Limited.

Summary

Rada Electronics Industries Limited beats MRV Communications on 6 of the 10 factors compared between the two stocks.

About MRV Communications

MRV Communications, Inc. (MRV) is a supplier of communications solutions to telecommunications service providers, enterprises and governments throughout the world. The Company’s products enable customers to provide high-bandwidth data, and video services and mobile communications services. The Company operates through Network Equipment segment. Its Network Equipment segment designs, manufactures, sells and services equipment used by commercial customers, governments and telecommunications service providers. Its products include switches, optical transport platforms, physical layer products and out-of-band management products, and specialized networking products. MRV markets and sells its products, through a range of channels, which include a direct sales force, manufacturers’ representatives, value-added-resellers, distributors and systems integrators. The Network Equipment business includes two business units: Optical Communications Systems division and Appointech, Inc.

About Rada Electronics Industries Limited

RADA Electronic Industries Ltd. is an aviation and defense company. The Company develops, manufactures and sells defense electronics, including, avionics solutions (including avionics for unmanned aerial vehicles (UAVs)), airborne data/video recording and management systems, inertial navigation systems and tactical land radars for defense forces and border protection systems. The Company’s product lines include Military avionics (Data/video recorders, core avionics for aircraft and UAVs); Inertial navigation systems (INS) for aerial and land platforms, and Tactical Radars for defense forces and border protection systems (land-based). The Company’s INS products are used by multiple combat platforms and weapon systems. The Company develops ground radars for tactical applications, such as defense forces protection and border protection. Its products are primarily sold to governmental agencies, governmental authorities and government-owned companies.

Receive News & Ratings for MRV Communications Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MRV Communications Inc. and related companies with MarketBeat.com's FREE daily email newsletter.