Riverbed Technology (NASDAQ: RVBD) and XG Technology (NASDAQ:XGTI) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Profitability

This table compares Riverbed Technology and XG Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Riverbed Technology 17.55% 24.83% 10.64%
XG Technology -57.07% -90.07% -51.59%

Institutional & Insider Ownership

4.6% of XG Technology shares are held by institutional investors. 2.8% of XG Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Riverbed Technology and XG Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Riverbed Technology N/A N/A N/A N/A N/A
XG Technology $14.98 million 1.70 -$15.54 million N/A N/A

Riverbed Technology has higher revenue, but lower earnings than XG Technology.

Analyst Recommendations

This is a summary of recent ratings and target prices for Riverbed Technology and XG Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Riverbed Technology 0 0 0 0 N/A
XG Technology 0 0 2 0 3.00

XG Technology has a consensus target price of $3.75, suggesting a potential upside of 63.76%. Given XG Technology’s higher probable upside, analysts plainly believe XG Technology is more favorable than Riverbed Technology.

Summary

XG Technology beats Riverbed Technology on 5 of the 8 factors compared between the two stocks.

About Riverbed Technology

Riverbed Technology, Inc. (Riverbed) is a provider of application performance infrastructure. The Company offers a platform to deliver, control and optimize IT resources across the hybrid enterprise. The Riverbed Application Performance Platform delivers application performance infrastructure solutions with a focus on two areas, which include application acceleration and performance management. The Wide area network (WAN) optimization for application acceleration includes Riverbed SteelHead, which provides WAN optimization solution, and Riverbed SteelFusion, which provides branch converged infrastructure. The Company’s application acceleration solutions also include Riverbed SteelApp, an application delivery controller (ADC). The Company’s performance management solution includes Riverbed SteelCentral, a performance management suite that combines its application-aware network performance management and application performance management control suite.

About XG Technology

xG Technology, Inc. develops a portfolio of intellectual property, which is embedded in its software algorithms that offer cognitive interference mitigation and spectrum access solutions for a range of applications using commercial off the shelf devices. The Company is a provider of wireless video solutions to broadcast, law enforcement and defense markets, and private mobile broadband networks for use in a range of environments. The Company markets its technology solutions across three business units: Integrated Microwave Technologies (IMT), Vislink Communication Systems and xMax. The Company offers a range of frequency-agnostic cognitive radio solutions. It focuses on various industries across the world, such as telecommunications, cable, defense and public safety, municipal governments, critical infrastructure and markets ranging from rural to urban areas and expeditionary deployments.

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