Fusion-IO (NYSE: FIO) and RadiSys Corporation (NASDAQ:RSYS) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Earnings and Valuation

This table compares Fusion-IO and RadiSys Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fusion-IO N/A N/A N/A N/A N/A
RadiSys Corporation $168.66 million 0.34 -$8.87 million ($0.63) -2.33

Fusion-IO has higher revenue, but lower earnings than RadiSys Corporation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Fusion-IO and RadiSys Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fusion-IO 0 0 0 0 N/A
RadiSys Corporation 0 0 5 0 3.00

RadiSys Corporation has a consensus price target of $3.60, indicating a potential upside of 144.90%. Given RadiSys Corporation’s higher probable upside, analysts clearly believe RadiSys Corporation is more favorable than Fusion-IO.

Insider & Institutional Ownership

58.7% of RadiSys Corporation shares are owned by institutional investors. 4.9% of RadiSys Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Fusion-IO and RadiSys Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fusion-IO -30.49% -26.35% -20.81%
RadiSys Corporation -14.38% -14.12% -5.46%

Summary

RadiSys Corporation beats Fusion-IO on 8 of the 8 factors compared between the two stocks.

About Fusion-IO

Fusion-io, Inc. provides solutions for enterprises, hyperscale datacenters, and small to medium enterprises (SMEs), that accelerates databases, virtualization, mission-critical applications, cloud computing, big data, and information systems. Its hardware and software platforms and solutions enable the acceleration of data and applications. It sells its solutions through a global direct sales force, original equipment manufacturers. The Company’s portfolio of storage memory products packages ioMemory hardware combined with its VSL software into a family of products suitable for direct, shared, and cached acceleration environments. Direct acceleration is provided by its ioDrive, ioScale, and ioFX enterprise grade PCIe-products that leverage flash and are placed in x86 servers or workstations to directly accelerate locally hosted applications. Its shared acceleration is provided by its ION Data Accelerator or ioControl software combined with ioMemory, VSL, and industry-standard servers.

About RadiSys Corporation

Radisys Corporation (Radisys) is a services acceleration company. The Company’s application aware traffic distribution platforms, real-time media processing products and wireless access technologies enable service providers to virtualize and monetize their networks. The Company’s products and services are organized into two segments: Software-Systems, and Embedded Products and Hardware Services. The Company’s Software-Systems segment consists of three product families: FlowEngine, MediaEngine and CellEngine. Also included in the Software-Systems segment is its Professional Service organization. The Company’s Embedded Products and Hardware Services segment provides customers with hardware based products targeted at the communications and healthcare markets. Products within this segment fall under primary categories, including T-Series Advanced Telecommunications Computing Architecture (ATCA) Platforms, Component Object Model (COM) Express and Rackmount Servers, and Other Products.

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