Critical Analysis: Viavi Solutions (NASDAQ:VIAV) & Nokia (NYSE:NOK)

Viavi Solutions (NASDAQ:VIAV) and Nokia (NYSE:NOK) are both large-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Valuation and Earnings

This table compares Viavi Solutions and Nokia”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viavi Solutions	$1.52 billion	7.65	-$30.40 million	($0.15)	-314.00
Nokia	$20.39 billion	2.98	$736.54 million	$0.14	75.56

Nokia has higher revenue and earnings than Viavi Solutions. Viavi Solutions is trading at a lower price-to-earnings ratio than Nokia, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Viavi Solutions has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Nokia has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Viavi Solutions and Nokia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viavi Solutions	1	1	6	1	2.78
Nokia	2	3	13	1	2.68

Viavi Solutions presently has a consensus target price of $55.43, suggesting a potential upside of 17.68%. Nokia has a consensus target price of $14.12, suggesting a potential upside of 33.50%. Given Nokia’s higher possible upside, analysts clearly believe Nokia is more favorable than Viavi Solutions.

Profitability

This table compares Viavi Solutions and Nokia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viavi Solutions	-2.00%	19.60%	7.48%
Nokia	3.49%	9.83%	5.53%

Insider & Institutional Ownership

95.5% of Viavi Solutions shares are held by institutional investors. Comparatively, 5.3% of Nokia shares are held by institutional investors. 1.8% of Viavi Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

About Viavi Solutions

Viavi Solutions, Inc. engages in the provision of network test, monitoring, and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It operates through the following segments: Network Enablement, Service Enablement, and Optical Security and Performance. The Network Enablement segment offers an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. The Service Enablement segment covers solutions and services primarily for communication service providers, and enterprises that deliver and/or operate broadband and IP networks (fixed and mobile) supporting voice, video, and data services as well as a wide range of applications. The Optical Security and Performance segment leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell products targeting anti-counterfeiting, consumer and industrial, government, healthcare, and other markets. The company was founded in 1979 and is headquartered in Chandler, AZ.

About Nokia

Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments: Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies. The company provides fixed networking solutions, such as fiber and copper-based access infrastructure, in-home Wi-Fi solutions, and cloud and virtualization services; IP networking solutions, including IP access, aggregation, and edge and core routing for residential, mobile, enterprise and cloud applications; optical networks solutions that provides optical transport networks for metro, regional, and long-haul applications, and subsea applications; and submarine networks for undersea cable transmission. It serves its products and services to communications service providers, webscales and hyperscalers, digital industries, and government. The company also offers mobile technology products and services for radio access networks and microwave radio links for transport networks, network management solutions, as well as network planning, optimization, network deployment, and technical support services. In addition, it offers cloud and network services, including core network solutions, such as voice and packet core; business applications, such as security, automation, and monetization; cloud and cognitive services; and enterprise solutions, including private wireless and industrial automation. Further, the company licenses intellectual property, including patents, technologies, and the Nokia brand. Nokia Oyj was founded in 1865 and is headquartered in Espoo, Finland.