Head-To-Head Survey: UTStarcom (UTSI) and Finisar (FNSR)

UTStarcom (NASDAQ: UTSI) and Finisar (NASDAQ:FNSR) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings and price targets for UTStarcom and Finisar, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UTStarcom 0 0 1 0 3.00
Finisar 1 2 10 1 2.79

UTStarcom presently has a consensus price target of $5.00, indicating a potential downside of 17.36%. Finisar has a consensus price target of $27.19, indicating a potential upside of 28.57%. Given Finisar’s higher probable upside, analysts clearly believe Finisar is more favorable than UTStarcom.

Earnings and Valuation

This table compares UTStarcom and Finisar’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UTStarcom $80.18 million 2.67 $290,000.00 N/A N/A
Finisar $1.45 billion 1.66 $249.34 million $1.75 12.09

Finisar has higher revenue and earnings than UTStarcom.

Insider & Institutional Ownership

27.0% of UTStarcom shares are held by institutional investors. Comparatively, 91.3% of Finisar shares are held by institutional investors. 2.7% of UTStarcom shares are held by insiders. Comparatively, 1.0% of Finisar shares are held by 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.

Profitability

This table compares UTStarcom and Finisar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UTStarcom N/A N/A N/A
Finisar 14.33% 9.51% 5.83%

Summary

Finisar beats UTStarcom on 9 of the 13 factors compared between the two stocks.

About UTStarcom

UTStarcom Holdings Corp. provides broadband products, solution and services. The Company delivers broadband transport and access (both wireless fidelity (Wi-Fi) and fixed line) products and solutions, optimized for mobile backhaul, metro aggregation, broadband access and Wi-Fi data offloading. Its segments include Equipment, which is focused on its equipment sales, including network infrastructure and application products, and Services, which is engaged in providing services and support of its equipment products and also the new operational support segment. The broadband product lines include family of packet transport network (PTN) products based on multi-protocol label switch transport profile (MPLS-TP) and carrier Ethernet (CE) technologies enhanced through in-house software-defined networking (SDN) platform to support the network evolution, and multi services access network (MSAN) platform. Wireless broadband access is represented by end-to-end Carrier Wi-Fi solution.

About Finisar

Finisar Corporation (Finisar) is a provider of optical subsystems and components that are used in data communication and telecommunication applications. The Company’s optical subsystems consist of transmitters, receivers, transceivers, transponders and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in these networks, including the switches, routers, and servers used in wireline networks. These products rely on the use of semiconductor lasers and photodetectors in conjunction with integrated circuits and optoelectronic packaging to provide a means for transmitting and receiving digital signals over fiber optic cable at speeds ranging from less than one gigabit per second (Gbps), to more than 100 Gbps, over distances of less than 10 meters to more than 2,000 kilometers, using a range of network protocols and physical configurations.

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