Head-To-Head Survey: Spirent Communications (OTCMKTS:SPMYY) versus Viavi Solutions (NASDAQ:VIAV)

by · The Markets Daily

Viavi Solutions (NASDAQ:VIAVGet Free Report) and Spirent Communications (OTCMKTS:SPMYYGet Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Viavi Solutions and Spirent Communications’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Viavi Solutions1.33%10.70%4.04%
Spirent CommunicationsN/AN/AN/A

Insider & Institutional Ownership

95.5% of Viavi Solutions shares are held by institutional investors. 1.8% of Viavi Solutions shares are held by insiders. Comparatively, 1.0% of Spirent Communications shares are held by 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.

Valuation & Earnings

This table compares Viavi Solutions and Spirent Communications”s revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Viavi Solutions$1.08 billion3.60$34.80 million$0.07250.00
Spirent Communications$460.20 million3.37$12.90 millionN/AN/A

Viavi Solutions has higher revenue and earnings than Spirent Communications.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Viavi Solutions and Spirent Communications, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Viavi Solutions12702.60
Spirent Communications00000.00

Viavi Solutions presently has a consensus target price of $16.89, suggesting a potential downside of 3.49%. Given Viavi Solutions’ stronger consensus rating and higher possible upside, equities analysts clearly believe Viavi Solutions is more favorable than Spirent Communications.

Volatility & Risk

Viavi Solutions has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Spirent Communications has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Summary

Viavi Solutions beats Spirent Communications on 12 of the 12 factors compared between the two stocks.

About Viavi Solutions

(Get Free Report)

Viavi Solutions, Inc. engages in the provision of network test, monitoring, and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It operates through the following segments: Network Enablement, Service Enablement, and Optical Security and Performance. The Network Enablement segment offers an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. The Service Enablement segment covers solutions and services primarily for communication service providers, and enterprises that deliver and/or operate broadband and IP networks (fixed and mobile) supporting voice, video, and data services as well as a wide range of applications. The Optical Security and Performance segment leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell products targeting anti-counterfeiting, consumer and industrial, government, healthcare, and other markets. The company was founded in 1979 and is headquartered in Chandler, AZ.

About Spirent Communications

(Get Free Report)

Spirent Communications plc provides automated test and assurance solutions in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company operates through Lifecycle Service Assurance, and Networks & Security segments. The Lifecycle Service Assurance segment offers lab-based testing solutions for 5G mobile core networks, and cellular and Wi-Fi devices, as well as live solutions. This segment also provides lab and test automation solutions for the telecom industry and enterprises. The Networks & Security segment develops test methodologies, tools, and services for virtualised networks, cloud, and artificial intelligence networking infrastructure, as well as application performance and proactive security validation. This segment also offers Ethernet/internet protocol performance testing solutions, as well as navigation satellite system test and simulation solutions while addressing opportunities in the broader positioning, navigation, and timing market, including low earth orbit satellites and autonomous vehicles. The company was formerly known as Spirent plc and changed its name to Spirent Communications plc in May 2006. Spirent Communications plc was founded in 1936 and is headquartered in Crawley, the United Kingdom.