ARRIS International PLC (NASDAQ: ARRS) and Ciena Corporation (NYSE:CIEN) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitabiliy and analyst recommendations.
Institutional & Insider Ownership
87.4% of ARRIS International PLC shares are owned by institutional investors. 1.2% of ARRIS International PLC shares are owned by insiders. Comparatively, 1.5% of Ciena Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of current ratings and target prices for ARRIS International PLC and Ciena Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ARRIS International PLC||0||2||7||0||2.78|
ARRIS International PLC currently has a consensus price target of $33.00, indicating a potential upside of 18.88%. Ciena Corporation has a consensus price target of $30.25, indicating a potential upside of 21.29%. Given Ciena Corporation’s higher probable upside, analysts plainly believe Ciena Corporation is more favorable than ARRIS International PLC.
Earnings & Valuation
This table compares ARRIS International PLC and Ciena Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ARRIS International PLC||$6.63 billion||0.78||$895.77 million||$0.65||42.71|
|Ciena Corporation||$2.72 billion||1.30||$345.32 million||$0.76||32.82|
ARRIS International PLC has higher revenue and earnings than Ciena Corporation. Ciena Corporation is trading at a lower price-to-earnings ratio than ARRIS International PLC, indicating that it is currently the more affordable of the two stocks.
This table compares ARRIS International PLC and Ciena Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ARRIS International PLC||1.90%||13.97%||5.79%|
Volatility & Risk
ARRIS International PLC has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Ciena Corporation has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500.
Ciena Corporation beats ARRIS International PLC on 9 of the 14 factors compared between the two stocks.
About ARRIS International PLC
ARRIS International plc is a media entertainment and data communications solutions provider. The Company operates in two segments: Customer Premises Equipment (CPE), and Network & Cloud (N&C). The Company enables service providers, including cable, telephone, and digital broadcast satellite operators, and media programmers to deliver media, voice and Internet Protocol (IP) data services to their subscribers. It is engaged in offering set-tops, digital video and IP television (IPTV) distribution systems, broadband access infrastructure platforms, and associated data and voice CPE, which it also sells directly to consumers through retail channels. Its solutions are complemented by an array of services, including technical support, repair and refurbishment, and system design and integration. The CPE segment consists of CPE Products-Video and CPE Products-Broadband. The N&C segment consists of Infrastructure Products, Cloud Software and Global Services.
About Ciena Corporation
Ciena Corporation is a network strategy and technology company, which provides solutions that enable a range of network operators to adopt communication architectures and deliver an array of services, relied upon by enterprise and consumer end users. It provides equipment, software and services that support the transport, switching, aggregation, service delivery and management of voice, video and data traffic on communications networks. It segments include Networking Platforms; Software and Software-Related Services, and Global Services. The Networking Platforms segment consists of Converged Packet Optical, Packet Networking and Optical Transport product portfolios. The software business is engaged in the development and licensing of element and network management software and software-related services that support its hardware offerings. It offers a suite of consulting and support services that help its customers to design, optimize, deploy and maintain their communications networks.
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