NetGear (NASDAQ:NTGR) and Alvarion (OTCMKTS:ALVRQ) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Institutional and Insider Ownership
99.9% of NetGear shares are owned by institutional investors. 5.1% of NetGear shares are owned by company insiders. Comparatively, 1.0% of Alvarion shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares NetGear and Alvarion’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NetGear||$1.41 billion||1.19||$19.43 million||$2.32||22.73|
NetGear has higher revenue and earnings than Alvarion.
Volatility and Risk
NetGear has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, Alvarion has a beta of -1.36, meaning that its share price is 236% less volatile than the S&P 500.
This table compares NetGear and Alvarion’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for NetGear and Alvarion, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NetGear currently has a consensus price target of $71.00, indicating a potential upside of 34.62%. Given NetGear’s higher possible upside, research analysts plainly believe NetGear is more favorable than Alvarion.
NetGear beats Alvarion on 8 of the 9 factors compared between the two stocks.
NetGear Company Profile
NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The company operates in three segments: Arlo, Connected Home, and Small and Medium Business. It offers smart home/connected home/broadband access products, such as remote video security systems, broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, and WiFi network adapters. The company also provides Ethernet switches, wireless controllers and access points, unified storage products, and Internet security appliances for small and medium-sized businesses. It markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers in the Americas, Europe, the Middle-East, Africa, and the Asia Pacific. NETGEAR, Inc. was founded in 1996 and is headquartered in San Jose, California.
Alvarion Company Profile
Alvarion Ltd. provides autonomous Wi-Fi network products worldwide. The company designs solutions for carrier Wi-Fi, enterprise connectivity, smart city, smart hospitality, and connected campuses and events. It offers BreezeACCESS, a wireless broadband access solution for license-exempt frequencies; BreezeMAX Extreme, a WiMAX 16e wireless broadband technology; BreezeNET, a point-to-point and point-to-multipoint networking solution for connecting buildings, campuses, industrial zones, and remote sites; and BreezeULTRA, a family of wireless broadband products that operate in the 4.95.9 GHz unlicensed frequency band. The company also provides WBS and WBSn, which are carrier-grade outdoor Wi-Fi base stations; WBSac, a carrier-grade Wi-Fi solution for buildings, workplaces, universities, schools, hospitals, hotels, and large stores; Arena Controller, a Wi-Fi cloud controller that acts as mediation device between the operator's control core and the Wi-Fi infrastructure; and Star Management Suite, a set of carrier-class tools, which support the wireless broadband life-cycle – from initial installation to full service provision, and ongoing maintenance and support activities. It serves carriers, local governments, and hospitality sectors. The company was formerly known as BreezeCOM Ltd. and changed its name to Alvarion Ltd. as result of merger with Floware Wireless Systems Ltd. in August 2001. The company was founded in 1992 and is headquartered in Herzliya, Israel. Alvarion Ltd. is a subsidiary of SuperCom Ltd.
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