Extreme Networks (NASDAQ:EXTR) & UTStarcom (NASDAQ:UTSI) Head to Head Review

UTStarcom (NASDAQ:UTSI) and Extreme Networks (NASDAQ:EXTR) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Volatility & Risk

UTStarcom has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, Extreme Networks has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.

Institutional and Insider Ownership

1.8% of UTStarcom shares are owned by institutional investors. Comparatively, 91.0% of Extreme Networks shares are owned by institutional investors. 2.7% of UTStarcom shares are owned by company insiders. Comparatively, 3.6% of Extreme Networks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for UTStarcom and Extreme Networks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UTStarcom	1	0	0	0	1.00
Extreme Networks	0	2	7	0	2.78

Extreme Networks has a consensus target price of $32.25, indicating a potential upside of 32.12%. Given Extreme Networks’ stronger consensus rating and higher possible upside, analysts plainly believe Extreme Networks is more favorable than UTStarcom.

Earnings and Valuation

This table compares UTStarcom and Extreme Networks”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UTStarcom	$8.98 million	2.57	-$7.95 million	N/A	N/A
Extreme Networks	$1.28 billion	2.49	$42.12 million	$0.31	78.74

Extreme Networks has higher revenue and earnings than UTStarcom.

Profitability

This table compares UTStarcom and Extreme Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UTStarcom	N/A	N/A	N/A
Extreme Networks	3.28%	88.88%	6.32%

Summary

Extreme Networks beats UTStarcom on 11 of the 12 factors compared between the two stocks.

About UTStarcom

UTStarcom Holdings Corp. operates as a telecom infrastructure provider to develop technology for bandwidth from cloud-based services, mobile, streaming, and other applications in China, India, Japan, and internationally. Its products include converged packet transport, disaggregated router platform, packet transport network, packet aggregation network, multi-services access network, fiber to the X, carrier Wi-Fi solutions, and software defined network controller products. The company also offers packet optical and network synchronization products. It serves telecommunications operators and equipment distributors. The company was founded in 1991 and is based in Hangzhou, the People's Republic of China.

About Extreme Networks

Extreme Networks, Inc. delivers cloud-driven networking solutions that leverage the powers of machine learning, artificial intelligence, analytics, and automation.
The company designs, develops, and manufactures wired and wireless network infrastructure equipment and develops the software for network management, policy, analytics, security, and access controls. Over 50,000 customers globally trust their end-to-end, cloud-driven networking solutions and rely on our top-rated services and support to accelerate their digital transformation efforts.