Aerohive Networks (NYSE: HIVE) and EMCORE (NASDAQ:EMKR) are both small-cap communications & networking – nec companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

This table compares Aerohive Networks and EMCORE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aerohive Networks -17.00% -103.45% -18.90%
EMCORE 6.70% 9.30% 7.74%

Analyst Ratings

This is a breakdown of recent ratings for Aerohive Networks and EMCORE, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 2 4 0 2.67
EMCORE 0 2 2 0 2.50

Aerohive Networks currently has a consensus price target of $6.31, suggesting a potential upside of 51.32%. EMCORE has a consensus price target of $9.13, suggesting a potential upside of 29.43%. Given Aerohive Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Aerohive Networks is more favorable than EMCORE.

Institutional and Insider Ownership

46.1% of Aerohive Networks shares are owned by institutional investors. Comparatively, 77.5% of EMCORE shares are owned by institutional investors. 26.2% of Aerohive Networks shares are owned by company insiders. Comparatively, 0.8% of EMCORE shares are owned 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.

Earnings & Valuation

This table compares Aerohive Networks and EMCORE’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerohive Networks $169.82 million 1.32 -$36.91 million ($0.51) -8.18
EMCORE $122.89 million 1.56 $8.23 million $0.31 22.74

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

Volatility & Risk

Aerohive Networks has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, EMCORE has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Summary

EMCORE beats Aerohive Networks on 8 of the 14 factors compared between the two stocks.

About Aerohive Networks

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

About EMCORE

EMCORE Corporation is engaged in designing and manufacturing indium phosphide (InP) optical chips, components, subsystems and systems for the broadband and specialty fiber optics market. The Company focuses on linear fiber optic transmission technology. The Company operates through Fiber Optics segment. The Company provides optical components, and also end-to-end solutions for high-speed communications network infrastructures. The Company’s optical technologies are designed for cable television (CATV) and fiber-to-the-premise (FTTP) networks, telecommunications and data centers, satellite communications, aerospace and defense, wireless networks, and broadcast and professional audio/video systems. The Company’s fiber optics products enable information that is modulated on light signals to be transmitted, routed (switched) and received in communication systems and networks.

Receive News & Ratings for Aerohive Networks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Aerohive Networks and related companies with MarketBeat.com's FREE daily email newsletter.