Vistance Networks (NASDAQ:VISN) vs. NETGEAR (NASDAQ:NTGR) Critical Review

Vistance Networks (NASDAQ:VISN) and NETGEAR (NASDAQ:NTGR) are both small-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vistance Networks	$1.99 billion	0.75	$2.28 billion	$30.80	0.21
NETGEAR	$694.41 million	0.87	-$17.92 million	($0.93)	-23.90

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

Institutional & Insider Ownership

88.0% of Vistance Networks shares are owned by institutional investors. Comparatively, 83.0% of NETGEAR shares are owned by institutional investors. 3.5% of Vistance Networks shares are owned by company insiders. Comparatively, 3.1% of NETGEAR shares are owned by company 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.

Profitability

This table compares Vistance Networks and NETGEAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vistance Networks	247.69%	32.28%	4.61%
NETGEAR	-3.71%	-2.79%	-1.67%

Volatility and Risk

Vistance Networks has a beta of 2.39, meaning that its share price is 139% more volatile than the S&P 500. Comparatively, NETGEAR has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Vistance Networks and NETGEAR, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vistance Networks	0	4	0	0	2.00
NETGEAR	1	1	2	0	2.25

Vistance Networks presently has a consensus price target of $19.33, indicating a potential upside of 198.35%. NETGEAR has a consensus price target of $36.50, indicating a potential upside of 64.19%. Given Vistance Networks’ higher possible upside, equities research analysts plainly believe Vistance Networks is more favorable than NETGEAR.

Summary

Vistance Networks beats NETGEAR on 11 of the 14 factors compared between the two stocks.

About Vistance Networks

CommScope Holding Company, Inc. provides infrastructure solutions for communications and entertainment networks. It operates through four segments: Broadband Networks (Broadband), Outdoor Wireless Networks (OWN), Venue and Campus Networks (VCN), and Home Networks (Home). The Broadband segment provides converged cable access platforms, passive optical networking products, video systems, access technologies, fiber and coaxial cables, fiber and copper connectivity products, and hardened closures to the telco and cable provider broadband market. The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, Spectrum Access System, and Comsearch products to the macro and metro cell markets. The VCN segment offers Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells, enterprise fiber, and copper infrastructures for campuses, venues, data centers, and buildings. The Home segment provides devices and related software, and management solutions that offer residential connectivity and services to subscribers, such as digital subscriber lines, cable modems, and telephony and data gateways; and set top boxes and software that support cable, satellite, and Internet protocol television content delivery, which include digital video recorders, high definition set top boxes, and hybrid set top devices. It offers its products and services through specialized resellers and distributors, satellite video distributors, and system integrators, as well as directly to customers in the United States, Europe, the Middle East, Africa, the Asia Pacific, the Caribbean, Latin America, and Canada. The company was formerly known as Cedar I Holding Company, Inc. and changed its name to CommScope Holding Company, Inc. in January 2011. CommScope Holding Company, Inc. was founded in 1976 and is headquartered in Hickory, North Carolina.

About NETGEAR

NETGEAR, Inc. provides connectivity solutions the Americas; Europe, the Middle East, Africa; and the Asia Pacific. The company operates in two segments, Connected Home, and NETGEAR for Business. The Connected Home segment offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, digital displays, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, and Wi-Fi network adapters; and provides value-added service offerings, including security and privacy, technical support, and parental controls. The NETGEAR for Business segment provides pro AV Solutions; pro routers; enterprise grade cloud managed or standalone access points; general purpose ethernet switches; NETGEAR Insight remote management software; and NETGEAR engage controller. It markets and sells its products through wholesale distributors, traditional and online retailers, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store. The company was incorporated in 1996 and is headquartered in San Jose, California.