RadiSys Corporation (NASDAQ:RSYS) and PC Connection (CNXN) Critical Review

RadiSys Corporation (NASDAQ: RSYS) and PC Connection (NASDAQ:CNXN) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitabiliy, institutional ownership, valuation and earnings.

Profitability

This table compares RadiSys Corporation and PC Connection’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RadiSys Corporation -14.38% -14.12% -5.46%
PC Connection 1.66% 11.39% 7.37%

Risk and Volatility

RadiSys Corporation has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, PC Connection has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for RadiSys Corporation and PC Connection, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RadiSys Corporation 0 0 4 0 3.00
PC Connection 0 0 1 0 3.00

RadiSys Corporation currently has a consensus target price of $3.63, indicating a potential upside of 119.70%. PC Connection has a consensus target price of $33.00, indicating a potential upside of 24.86%. Given RadiSys Corporation’s higher probable upside, research analysts plainly believe RadiSys Corporation is more favorable than PC Connection.

Insider & Institutional Ownership

57.4% of RadiSys Corporation shares are held by institutional investors. Comparatively, 41.2% of PC Connection shares are held by institutional investors. 4.9% of RadiSys Corporation shares are held by company insiders. Comparatively, 57.3% of PC Connection shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares RadiSys Corporation and PC Connection’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RadiSys Corporation $168.66 million 0.38 -$8.87 million ($0.63) -2.62
PC Connection $2.86 billion 0.25 $90.17 million $1.79 14.77

PC Connection has higher revenue and earnings than RadiSys Corporation. RadiSys Corporation is trading at a lower price-to-earnings ratio than PC Connection, indicating that it is currently the more affordable of the two stocks.

Summary

PC Connection beats RadiSys Corporation on 8 of the 12 factors compared between the two stocks.

RadiSys Corporation Company Profile

Radisys Corporation (Radisys) is a services acceleration company. The Company’s application aware traffic distribution platforms, real-time media processing products and wireless access technologies enable service providers to virtualize and monetize their networks. The Company’s products and services are organized into two segments: Software-Systems, and Embedded Products and Hardware Services. The Company’s Software-Systems segment consists of three product families: FlowEngine, MediaEngine and CellEngine. Also included in the Software-Systems segment is its Professional Service organization. The Company’s Embedded Products and Hardware Services segment provides customers with hardware based products targeted at the communications and healthcare markets. Products within this segment fall under primary categories, including T-Series Advanced Telecommunications Computing Architecture (ATCA) Platforms, Component Object Model (COM) Express and Rackmount Servers, and Other Products.

PC Connection Company Profile

PC Connection, Inc. is a provider of a range of information technology (IT) solutions. The Company conducts its business operations through three business segments: small- to medium-sized businesses (SMB), Large Account and Public Sector. The Company enables customers to design, enable, manage and service their IT environments. The Company’s IT products include computer systems, software and peripheral equipment, networking communications, and other products and accessories that the Company purchases from manufacturers, distributors and other suppliers. The Company also offers services involving design, configuration and implementation of IT solutions. The Company markets its products and services through its Websites, including www.connection.com, www.connection.com/enterprise, www.connection.com/publicsector, and www.macconnection.com. It uses a combination of outbound telemarketing, including some on-site sales solicitation by business development managers.

Receive News & Ratings for RadiSys Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RadiSys Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply