EXFO (NASDAQ: EXFO) and Keysight Technologies (NYSE:KEYS) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Institutional & Insider Ownership

17.0% of EXFO shares are owned by institutional investors. Comparatively, 88.1% of Keysight Technologies shares are owned by institutional investors. 20.0% of EXFO shares are owned by insiders. Comparatively, 1.2% of Keysight Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares EXFO and Keysight Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EXFO $243.18 million 0.93 $17.91 million $0.04 103.78
Keysight Technologies $3.06 billion 2.51 $550.00 million $1.33 31.11

Keysight Technologies has higher revenue and earnings than EXFO. Keysight Technologies is trading at a lower price-to-earnings ratio than EXFO, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

EXFO has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Keysight Technologies has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for EXFO and Keysight Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXFO 0 4 1 0 2.20
Keysight Technologies 0 2 8 0 2.80

EXFO presently has a consensus target price of $5.70, indicating a potential upside of 37.35%. Keysight Technologies has a consensus target price of $47.11, indicating a potential upside of 13.88%. Given EXFO’s higher possible upside, equities research analysts clearly believe EXFO is more favorable than Keysight Technologies.

Profitability

This table compares EXFO and Keysight Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EXFO 0.93% 3.25% 2.47%
Keysight Technologies 7.58% 20.85% 8.06%

Summary

Keysight Technologies beats EXFO on 11 of the 14 factors compared between the two stocks.

About EXFO

EXFO Inc is a Canada-based company, which provides communications service providers (CSPs) and data center, cloud and Web-scale operators with field test, service assurance and analytics solutions to ensure the deployment, maintenance and management of physical, virtual, fixed and mobile networks. It focuses on network infrastructures: fourth generation (4G)/long-term evolution (LTE), wireless backhaul, small cells and distributed antenna systems (DAS), 100G network upgrades and fiber-to-the-home (FTTH)/fiber-to-the-curb (FTTC)/fiber-to-the-node (FTTN) deployments. It offers a range of wire line and wireless tests, service assurance and analytics solutions to the global telecommunications industry. Its products include TestFlow; LTB-8 platform; a family of optical time domain reflect meters (OTDRs); iSAM; MaxTester-940 Fiber Certifier optical loss test set (OLTS) for data center and enterprise markets, and the G.fast handheld test set.

About Keysight Technologies

Keysight Technologies, Inc. is a measurement company engaged in providing electronic design and test solutions to communications and electronics industries. The Company provides electronic design and test instruments and systems and related software, software design tools and related services that are used in the design, development, manufacture, installation, deployment and operation of electronics equipment. The Company operates through three segments: Communications Solutions Group (CSG), Electronic Industrial Solutions Group (EISG) and Services Solutions Group (SSG). The CSG and EISG segments provide electronic design and test software, instruments, and systems used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment. The SSG segment provides integrated service solutions, including repair and calibration services, professional services and remanufactured equipment.

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