Head to Head Review: Brocade Communications Systems (BRCD) vs. Ixia (XXIA)

Brocade Communications Systems (NASDAQ: BRCD) and Ixia (NASDAQ:XXIA) are both companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Profitability

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This table compares Brocade Communications Systems and Ixia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brocade Communications Systems -3.56% -3.07% -1.62%
Ixia -29.28% -28.71% -19.71%

Valuation & Earnings

This table compares Brocade Communications Systems and Ixia’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brocade Communications Systems $2.35 billion 2.24 $213.81 million N/A N/A
Ixia N/A N/A N/A N/A N/A

Brocade Communications Systems has higher revenue and earnings than Ixia.

Insider & Institutional Ownership

83.7% of Brocade Communications Systems shares are owned by institutional investors. Comparatively, 63.6% of Ixia shares are owned by institutional investors. 1.8% of Brocade Communications Systems shares are owned by company insiders. Comparatively, 24.4% of Ixia 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.

Dividends

Brocade Communications Systems pays an annual dividend of $0.22 per share and has a dividend yield of 1.7%. Ixia does not pay a dividend.

Analyst Ratings

This is a breakdown of current ratings and target prices for Brocade Communications Systems and Ixia, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brocade Communications Systems 0 3 0 0 2.00
Ixia 0 0 0 0 N/A

Brocade Communications Systems currently has a consensus price target of $12.83, suggesting a potential upside of 1.13%. Given Brocade Communications Systems’ higher possible upside, equities analysts plainly believe Brocade Communications Systems is more favorable than Ixia.

Summary

Brocade Communications Systems beats Ixia on 7 of the 8 factors compared between the two stocks.

Brocade Communications Systems Company Profile

Brocade Communications Systems, Inc. (Brocade) is a supplier of networking hardware, software and services, including storage area networking (SAN) solutions and Internet protocol (IP) networking solutions for businesses and organizations of various types and sizes. The Company operates through three segments: SAN Products, IP Networking Products and Global Services. The SAN Products segment includes infrastructure products and solutions that help customers develop and deploy storage and server consolidation, disaster recovery and data security. The IP Networking Products segment includes Layer 2 and Layer 3 Ethernet switches, and routers to connect users over private and public networks. The Global Services segment includes break or fix maintenance, installation, consulting, network management and software maintenance, and post-contract customer support. Its products enable customers to deploy architectures and technologies, including virtualization and cloud computing.

Ixia Company Profile

Ixia is a provider of physical and virtual network application performance and security resilience solutions. The Company’s product solutions consist of its hardware platforms, software applications and services, including warranty and maintenance offerings. The Company helps its customers to validate the performance and security resilience of their applications and networks. The Company offers network test hardware platforms with interchangeable interfaces, using a common set of applications and Application Programing Interfaces (APIs). The Company provides its solutions to network equipment manufacturers (NEMs), service providers, and enterprise and government organizations. The Company’s product solutions consist of its hardware platforms, such as chassis, interface cards and appliances, software application tools, and services, including its warranty and maintenance offerings and professional services.

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