ADTRAN (NASDAQ:ADTN) & Calix (NYSE:CALX) Financial Analysis
by Kim Johansen · The Markets DailyCalix (NYSE:CALX – Get Free Report) and ADTRAN (NASDAQ:ADTN – Get Free Report) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.
Risk and Volatility
Calix has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, ADTRAN has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.
Institutional & Insider Ownership
98.1% of Calix shares are owned by institutional investors. Comparatively, 80.6% of ADTRAN shares are owned by institutional investors. 17.4% of Calix shares are owned by company insiders. Comparatively, 2.2% of ADTRAN shares are owned by company 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.
Analyst Recommendations
This is a breakdown of current recommendations for Calix and ADTRAN, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Calix | 1 | 1 | 7 | 0 | 2.67 |
| ADTRAN | 2 | 1 | 4 | 0 | 2.29 |
Calix currently has a consensus price target of $63.86, suggesting a potential upside of 61.35%. ADTRAN has a consensus price target of $14.67, suggesting a potential upside of 74.60%. Given ADTRAN’s higher probable upside, analysts plainly believe ADTRAN is more favorable than Calix.
Profitability
This table compares Calix and ADTRAN’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Calix | 4.61% | 6.17% | 4.90% |
| ADTRAN | -2.29% | 14.24% | 1.66% |
Valuation & Earnings
This table compares Calix and ADTRAN”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Calix | $1.00 billion | 2.49 | $17.88 million | $0.74 | 53.48 |
| ADTRAN | $1.08 billion | 0.63 | -$45.66 million | ($0.28) | -30.00 |
Calix has higher earnings, but lower revenue than ADTRAN. ADTRAN is trading at a lower price-to-earnings ratio than Calix, indicating that it is currently the more affordable of the two stocks.
Summary
Calix beats ADTRAN on 10 of the 14 factors compared between the two stocks.
About Calix
Calix, Inc., together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. The company provides Calix Cloud platform, a role-based analytics platform comprising Calix Engagement Cloud, Calix Service Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application, such as CommandIQ for residents and CommandWorx for businesses; Calix Intelligent Access EDGE, an access network solution for automated and intelligent networks; and Calix Revenue EDGE, a premises solution for subscriber managed services. It also offers SmartLife managed services, including SmartHome managed services and applications to enhance, operate and secure the connected experience of subscribers in their home; SmartTown managed services that reimagine community Wi-Fi as a ubiquitous, secure, and managed experience across a BSP's footprint; and SmartBiz managed services that address the business networking and productivity needs of business owners with an all-in-one managed service. In addition, the company provides Wi-Fi systems under GigaSpire and GigaPro brands to be ready for deployment as a complete subscriber experience solution for BSP's residential and business subscribers. It offers its products through its direct sales force and resellers. The company was incorporated in 1999 and is headquartered in San Jose, California.
About ADTRAN
ADTRAN Holdings, Inc., through its subsidiaries, provides networking and communications platforms, software, systems, and services in the United States, Germany, the United Kingdom, and internationally. It operates through two segments, Network Solutions, and Services & Support. It offers residential gateways; ethernet passive optical network ONUs; gigabit passive optical network/XGS-PON ONTs; traditional SSE, routers, and switches; edge cloud; carrier ethernet network interface devices; Optical Line Terminals; Packet Aggregation, Copper Access, and Oscilloquartz; optical transport and engine solutions; infrastructure monitoring solution; and training, professional, software, and managed services. The company also provides various software, such as Mosaic One SaaS, n-Command, Procloud, MCP, AOE and ACI-E, and Ensemble Controller. It serves large, medium, and small service providers; alternative service providers, such as utilities, municipalities and fiber overbuilders; cable/MSOs; and SMBs and distributed enterprises. ADTRAN Holdings, Inc. was incorporated in 1985 and is headquartered in Huntsville, Alabama.