A10 Networks (NASDAQ: ELON) and Echelon (NASDAQ:ELON) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for A10 Networks and Echelon, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A10 Networks 0 2 0 0 2.00
Echelon 0 0 0 0 N/A

A10 Networks currently has a consensus price target of $7.00, indicating a potential upside of 3.40%. Given A10 Networks’ higher possible upside, equities research analysts plainly believe A10 Networks is more favorable than Echelon.

Profitability

This table compares A10 Networks and Echelon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A10 Networks -4.57% -10.93% -4.55%
Echelon -14.73% -20.99% -15.49%

Valuation and Earnings

This table compares A10 Networks and Echelon’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
A10 Networks $235.42 million 2.09 -$10.75 million N/A N/A
Echelon $31.67 million 1.22 -$4.62 million N/A N/A

Echelon has lower revenue, but higher earnings than A10 Networks.

Volatility and Risk

A10 Networks has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Echelon has a beta of -1.04, indicating that its share price is 204% less volatile than the S&P 500.

Institutional and Insider Ownership

62.4% of A10 Networks shares are held by institutional investors. Comparatively, 25.9% of Echelon shares are held by institutional investors. 31.6% of A10 Networks shares are held by insiders. Comparatively, 13.0% of Echelon shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

A10 Networks beats Echelon on 9 of the 10 factors compared between the two stocks.

About A10 Networks

A10 Networks, Inc. provides software and hardware solutions in the United States, Japan, and internationally. The company's products are built on advanced core operating system platform. It offers application delivery controllers that provide advanced server load balancing; lightning application delivery service, a cloud-native software-as-a-service platform designed to boost the delivery and security of applications and micro services; and carrier grade networking address translation product that offer network address and protocol translation services for service provider networks. The company also provides threat protection systems for the protection of networks and server resources against massive distributed denial of service attacks; secure sockets layer insight that decrypts secure sockets layer-encrypted traffic and forwards it to a third-party security device, such as a firewall, for deep packet inspection; and convergent firewall, which consolidates multiple critical security capabilities in one package by consolidating multiple security and networking functions in a single appliance. Its solutions enable cloud providers, Web-scale companies, service providers, government organizations, and enterprises to secure and optimize the performance of their data center and cloud applications; and secure their users, applications, and infrastructure from Internet, Web, and network threats. The company delivers its solutions on optimized hardware appliances, bare metal software, virtual appliances, and cloud-native software. It serves telecommunications, technology, industrial, retail, financial, gaming, and education industries. The company markets its products through sales organizations, as well as distribution channel partners, including distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California.

About Echelon

Echelon Corporation develops, markets, and sells embedded components, modules, edge servers, and software. The company offers chips, gateways, and design and management software under the LONWORKS and IzoT brands. It also provides a range of control networking solutions under the LumInsight and Lumewave by Echelon brands that consist of wired and wireless control nodes; smart gateways for interconnecting the control nodes; and a software-based Central Management System, which is used for startup, commissioning, management, and monitoring of the lighting network. The company sells its products and services to original equipment manufacturers and systems integrators in the building, industrial, transportation, utility/home, and other automation markets. The company markets its products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific/Japan through direct sales organization, third-party electronics representatives, value-added resellers, and distributors. Echelon Corporation was founded in 1988 and is headquartered in Santa Clara, California.

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