Extreme Networks (NASDAQ: EXTR) and Oplink Communications (NASDAQ:OPLK) are both network equipment companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Extreme Networks and Oplink Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Extreme Networks 0 0 3 0 3.00
Oplink Communications 0 0 0 0 N/A

Extreme Networks presently has a consensus price target of $13.33, indicating a potential upside of 13.19%.

Valuation & Earnings

This table compares Extreme Networks and Oplink Communications’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Extreme Networks $598.12 million 2.23 -$8.51 million $0.02 589.00
Oplink Communications N/A N/A N/A $0.05 N/A

Oplink Communications has higher revenue, but lower earnings than Extreme Networks. Oplink Communications is trading at a lower price-to-earnings ratio than Extreme Networks, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Extreme Networks and Oplink Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Extreme Networks 0.34% 46.58% 9.74%
Oplink Communications N/A N/A N/A

Insider & Institutional Ownership

77.7% of Extreme Networks shares are held by institutional investors. 1.9% of Extreme Networks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Extreme Networks beats Oplink Communications on 7 of the 8 factors compared between the two stocks.

Extreme Networks Company Profile

Extreme Networks, Inc. is a provider of network infrastructure equipment. The Company markets its products to business, governmental, healthcare, service provider and educational customers with a focus on corporate enterprises and metropolitan service providers on a global basis. The Company operates through the development and marketing of network infrastructure equipment segment. The Company’s products include ExtremeWireless, ExtremeSwitching, ExtremeControl, ExtremeManagement, ExtremeCloud, ExtremeAnalytics and ExtremeSecurity. The Company offers solutions in categories, which includes industry solutions, technology solutions and managed services solutions. The Company operates in three geographical areas: Americas, which includes the United States, Canada, Mexico, Central America and South America; EMEA, which includes Europe, Russia, Middle East and Africa, and APAC, which includes Asia Pacific, South Asia, India, Australia and Japan.

Oplink Communications Company Profile

Oplink Communications, Inc. designs, manufactures and sells optical networking components and subsystems. The Company’s products expand optical bandwidth, amplify optical signals, monitor and protect wavelength performance, redirect light signals, ensure signal connectivity and provide signal transmission and reception within an optical network. The Company provides over 350 different products that are sold as components and modules, or is integrated into custom solutions. The Company’s products and solutions can be applied to all segments of the fiber optic network infrastructure including long-haul networks, metropolitan area networks (MANs), local area networks (LANs), wireless backhaul, Internet data centers and fiber-to-the-home (FTTH) networks.

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