Evertz Technologies (OTCMKTS:EVTZF) versus Harmonic (NASDAQ:HLIT) Critical Contrast

Harmonic (NASDAQ:HLIT) and Evertz Technologies (OTCMKTS:EVTZF) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Profitability

This table compares Harmonic and Evertz Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harmonic	-8.50%	10.91%	5.98%
Evertz Technologies	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for Harmonic and Evertz Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmonic	1	3	3	0	2.29
Evertz Technologies	0	1	1	0	2.50

Harmonic presently has a consensus price target of $17.50, suggesting a potential upside of 45.59%. Given Harmonic’s higher probable upside, research analysts plainly believe Harmonic is more favorable than Evertz Technologies.

Insider and Institutional Ownership

99.4% of Harmonic shares are owned by institutional investors. Comparatively, 6.2% of Evertz Technologies shares are owned by institutional investors. 1.7% of Harmonic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Harmonic and Evertz Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmonic	$570.80 million	2.30	-$43.31 million	($0.42)	-28.62
Evertz Technologies	N/A	N/A	N/A	$0.93	12.01

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

Summary

Harmonic beats Evertz Technologies on 7 of the 11 factors compared between the two stocks.

About Harmonic

Harmonic Inc., together with its subsidiaries, provides broadband solutions worldwide. The company operates through Broadband and Video segments. The Broadband segment sells broadband access solutions and related services, including cOS software-based broadband access solutions to broadband operators; and cOS central cloud services, a subscription service for cOS customers. The Video segment sells video processing, production, and playout solutions and services to cable operators, and satellite and telco Pay-TV service providers, as well as to broadcast and media, including streaming media companies. Its video processing appliance solutions include network management and application software, and hardware products, such as encoders, video servers, high-density stream processing systems, and edge processors. This segment also provides VOS360 SaaS platform that provides both streaming and channel origination and distribution services; and software-as-a-service (SaaS) solutions, which enables the packaging and delivery of streaming services, including live streaming, VOD, catch-up TV, start-over TV, network-DVR and cloud-DVR services through HTTP streaming to various device along with dynamic and personal ad insertion. The company also provides technical support and professional services, such as maintenance and support, consulting, implementation, integration services, program management, technical design and planning, building and site preparation, integration and equipment installation, end-to-end system testing, and training, as well as SaaS-related support and deployment. It sells its products through its direct sales force, as well as through independent resellers and systems integrators. The company was incorporated in 1988 and is headquartered in San Jose, California.

About Evertz Technologies

Evertz Technologies Limited engages in the design, manufacture, and distribution of video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets in Canada, the United States, and internationally. The company offers contribution and distribution encoder, decoder, receiver, and processing products; and control panels, intelligent operations and controls, big data analytics, and network management systems, as well as orchestration, monitoring, and analytics solutions. It also provides video encoders, decoders, and multiplexing products comprising encoders/transcoders, decoders, multiplexers, monitoring and auto-changeover products, and enterprise products; optical media transport products; and audio consoles and processing products, such as mixing consoles, routing and I/O products, summing and processing products, and IP audio gateways. In addition, the company offers asset management and playout products, consisting of asset management, ingest, playout and branding, and transcoding/conforming products; live media production products; routers; flexible media edge products; and IP audio/video processing, media gateway, switch routing, timing, and software defined network orchestration products. Further, it provides multiviewers solutions comprising IP and SDI multiviewers, MVP, and accessories; Radio Frequency (RF) products; timing and synchronization products; and infrastructure and conversion products. The company serves content creators, broadcasters, specialty channels, and television service providers. Evertz Technologies Limited was founded in 1966 and is headquartered in Burlington, Canada.