Head-To-Head Contrast: ADTRAN (ADTN) vs. Harris Corporation (HRS)
ADTRAN (NASDAQ: ADTN) and Harris Corporation (NYSE:HRS) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
ADTRAN pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. Harris Corporation pays an annual dividend of $2.28 per share and has a dividend yield of 1.7%. ADTRAN pays out 43.9% of its earnings in the form of a dividend. Harris Corporation pays out 51.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ADTRAN has raised its dividend for 15 consecutive years.
This table compares ADTRAN and Harris Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for ADTRAN and Harris Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ADTRAN currently has a consensus price target of $24.00, suggesting a potential downside of 1.03%. Harris Corporation has a consensus price target of $121.33, suggesting a potential downside of 10.56%. Given ADTRAN’s higher possible upside, analysts clearly believe ADTRAN is more favorable than Harris Corporation.
Valuation & Earnings
This table compares ADTRAN and Harris Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ADTRAN||$686.83 million||1.69||$53.98 million||$0.82||29.57|
|Harris Corporation||$5.90 billion||2.75||$1.40 billion||$4.43||30.62|
Harris Corporation has higher revenue and earnings than ADTRAN. ADTRAN is trading at a lower price-to-earnings ratio than Harris Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
89.5% of ADTRAN shares are owned by institutional investors. Comparatively, 85.0% of Harris Corporation shares are owned by institutional investors. 3.0% of ADTRAN shares are owned by company insiders. Comparatively, 1.9% of Harris Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
ADTRAN has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Harris Corporation has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.
Harris Corporation beats ADTRAN on 11 of the 17 factors compared between the two stocks.
ADTRAN Company Profile
ADTRAN, Inc. (ADTRAN) is a provider of networking and communications equipment. The Company’s solutions enable voice, data, video and Internet communications across a range of network infrastructures. It operates through two segments: Network Solutions and Services & Support. Network Solutions includes software and hardware products that enable CSPs and enterprise customers to realize a fully connected world. It provides a full-range of network implementation, maintenance and managed services. Its solutions include Access & Aggregation, Customer Devices, and Traditional & Other Products. Its Access & Aggregation solutions are used by communications service providers (CSPs) to connect their network infrastructure to their subscribers. The portfolio of ADTRAN solutions within Access & Aggregation category includes a range of modular or fixed physical form factors designed to deliver the technology and economic fit based on the target subscriber density and environmental conditions.
Harris Corporation Company Profile
Harris Corporation is a technology company that provides products, systems and services that have defense and civil government applications, as well as commercial applications. It offers its products and services to government and commercial customer. It operates in four segments: Communication Systems, which serves markets in tactical communications and defense, and public safety networks; Space and Intelligence Systems, which provides complete Earth observation, environmental, geospatial, space protection, and intelligence solutions from advanced sensors and payloads, as well as ground processing and information analytics; Electronic Systems, which offers a portfolio of solutions in electronic warfare, avionics, wireless and technology, among others, and Critical Networks, which provides managed services supporting air traffic management, energy and maritime communications, and ground network operation and sustainment, as well as information technology (IT) and engineering services.
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