Critical Analysis: Lantronix (LTRX) and Harmonic (HLIT)
Lantronix (NASDAQ: LTRX) and Harmonic (NASDAQ:HLIT) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.
Earnings & Valuation
This table compares Lantronix and Harmonic’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Harmonic||$405.91 million||0.85||-$72.31 million||($1.01)||-4.21|
Volatility & Risk
Lantronix has a beta of -0.2, indicating that its share price is 120% less volatile than the S&P 500. Comparatively, Harmonic has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.
This table compares Lantronix and Harmonic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
16.7% of Lantronix shares are owned by institutional investors. Comparatively, 96.0% of Harmonic shares are owned by institutional investors. 52.4% of Lantronix shares are owned by company insiders. Comparatively, 4.3% of Harmonic 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.
This is a breakdown of current recommendations and price targets for Lantronix and Harmonic, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lantronix currently has a consensus price target of $4.00, suggesting a potential upside of 110.53%. Harmonic has a consensus price target of $5.33, suggesting a potential upside of 25.49%. Given Lantronix’s stronger consensus rating and higher possible upside, research analysts plainly believe Lantronix is more favorable than Harmonic.
Lantronix beats Harmonic on 8 of the 13 factors compared between the two stocks.
Lantronix, Inc. is a provider of secure data access and management solutions for Internet of things (IoT) and information technology (IT) assets. The Company organizes its products and solutions into three product lines, including IoT, IT Management and Other. Its IoT products consist of IoT Gateways and IoT Building Blocks. The Company’s IT Management product line includes console management, power management and keyboard video mouse (KVM), products that provide remote out-of-band management (OOBM) access to IT and networking infrastructure deployed in test labs, data centers and server rooms. Its Other product line includes non-focus products, such as the xPrintServer, xSenso and WiBox. Its connectivity solutions serves a range of industries, including data center, medical, security, environmental and government. The Company conducts its business in approximately three geographic regions, including the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific Japan (APJ).
Harmonic Inc. (Harmonic) designs, manufactures and sells video infrastructure products, and system solutions. The Company has two segments: Video and Cable Edge. Harmonic provides technical support and professional services to its customers around the world. The Video segment sells video processing and production, and playout solutions and services to broadcast and media companies, streaming media companies, cable operators, and satellite and telecommunications (telco), and pay television (TV) service providers. Its Cable Edge business sells cable edge solutions and related services to cable operators around the world. The Video segment offers a range of products and solutions, as well as software-based media processing platforms. The Company’s Narrowcast Services Gateway (NSG) products are integrated edge gateway products that integrate routing, multiplexing, scrambling and modulation into a single package for the delivery of narrowcast services to subscribers over cable networks.
Receive News & Stock Ratings for Lantronix Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lantronix Inc. and related stocks with our FREE daily email newsletter.