Financial Review: UTStarcom (UTSI) versus Alcatel Lucent (ALU)
UTStarcom (NASDAQ: UTSI) and Alcatel Lucent (NYSE:ALU) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Volatility & Risk
UTStarcom has a beta of -0.25, suggesting that its stock price is 125% less volatile than the S&P 500. Comparatively, Alcatel Lucent has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500.
This table compares UTStarcom and Alcatel Lucent’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
27.6% of UTStarcom shares are held by institutional investors. 2.7% of UTStarcom shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for UTStarcom and Alcatel Lucent, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
UTStarcom presently has a consensus target price of $5.00, suggesting a potential upside of 31.93%. Given UTStarcom’s higher probable upside, equities analysts clearly believe UTStarcom is more favorable than Alcatel Lucent.
Valuation & Earnings
This table compares UTStarcom and Alcatel Lucent’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
UTStarcom has higher revenue and earnings than Alcatel Lucent.
UTStarcom beats Alcatel Lucent on 5 of the 9 factors compared between the two stocks.
UTStarcom Company Profile
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.
Alcatel Lucent Company Profile
Alcatel Lucent SA is a provider of Internet protocol (IP) networking, ultra-broadband access and cloud technology solutions. The Company operates through two segments for the networks business. The Ultra Broadband Networks segment consists of Mobile Networks and Fixed Networks business groups. The IP Networks and Applications segment consists of Internet protocol (IP)/Optical Networks and Applications and Analytics business groups. Its other segment consists of businesses run as separate operations (Alcatel Submarine Networks and Radio Frequency Systems (RFS)). The Company offers a range of solutions, including Communications and collaboration, IP Core Routing, IP/optical integration, long term evolution (LTE) Ultra-Broadband, Software-defined networking and Vplus. The Company offers a range of consulting, managed, maintenance and professional services, including Bell Labs Consulting and Build, Operate and Manage (BOM) Solution for Mobility Networks. The main shareholder is Nokia.
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