Calix (CALX) and Brocade Communications Systems (BRCD) Head to Head Review
Calix (NYSE: CALX) and Brocade Communications Systems (NASDAQ:BRCD) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
This is a summary of recent ratings and recommmendations for Calix and Brocade Communications Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brocade Communications Systems||1||3||0||0||1.75|
Calix presently has a consensus target price of $6.50, suggesting a potential downside of 6.47%. Brocade Communications Systems has a consensus target price of $12.83, suggesting a potential upside of 1.13%. Given Brocade Communications Systems’ higher probable upside, analysts clearly believe Brocade Communications Systems is more favorable than Calix.
Brocade Communications Systems pays an annual dividend of $0.22 per share and has a dividend yield of 1.7%. Calix does not pay a dividend. Brocade Communications Systems pays out 314.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
Calix has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Brocade Communications Systems has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.
Insider & Institutional Ownership
65.2% of Calix shares are held by institutional investors. Comparatively, 83.7% of Brocade Communications Systems shares are held by institutional investors. 16.5% of Calix shares are held by company insiders. Comparatively, 1.8% of Brocade Communications Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Calix and Brocade Communications Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brocade Communications Systems||1.30%||5.42%||2.84%|
Earnings & Valuation
This table compares Calix and Brocade Communications Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Calix||$458.79 million||0.76||-$27.40 million||($1.63)||-4.26|
|Brocade Communications Systems||$2.35 billion||2.24||$213.81 million||$0.07||181.29|
Brocade Communications Systems has higher revenue and earnings than Calix. Calix is trading at a lower price-to-earnings ratio than Brocade Communications Systems, indicating that it is currently the more affordable of the two stocks.
Brocade Communications Systems beats Calix on 10 of the 14 factors compared between the two stocks.
Calix, Inc. provides broadband communications access systems and software for fiber- and copper-based network architectures that enable communications service providers (CSPs), to transform their networks and connect to their residential and business subscribers. The Company enables CSPs to provide various services, from basic voice and data to advanced broadband services, over legacy and next-generation access networks. It develops and sells carrier-class hardware and cloud products. Its portfolio consists of three core systems and/or nodes: E-Series access systems and nodes (E-Series systems and nodes), B6 access nodes (B-Series nodes), and the C7 multiservice, multiprotocol access system (C-Series system). These systems and nodes are complemented by the P-Series optical network terminals and residential gateways, the GigaFamily of GigaCenters, GigaHubs, and GigaPoints, the Calix Management System, OpenLink Cable software and Compass Cloud family of software-as-a-service products.
About Brocade Communications Systems
Brocade Communications Systems, Inc. (Brocade) is a supplier of networking hardware, software and services, including storage area networking (SAN) solutions and Internet protocol (IP) networking solutions for businesses and organizations of various types and sizes. The Company operates through three segments: SAN Products, IP Networking Products and Global Services. The SAN Products segment includes infrastructure products and solutions that help customers develop and deploy storage and server consolidation, disaster recovery and data security. The IP Networking Products segment includes Layer 2 and Layer 3 Ethernet switches, and routers to connect users over private and public networks. The Global Services segment includes break or fix maintenance, installation, consulting, network management and software maintenance, and post-contract customer support. Its products enable customers to deploy architectures and technologies, including virtualization and cloud computing.
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