Financial Contrast: Extreme Networks (NASDAQ:EXTR) versus Viasat (NASDAQ:VSAT)

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

Valuation & Earnings

This table compares Extreme Networks and Viasat”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extreme Networks	$1.28 billion	2.31	$42.12 million	$0.31	73.32
Viasat	$4.64 billion	2.27	-$34.09 million	($0.24)	-318.25

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Extreme Networks	3.28%	88.88%	6.32%
Viasat	-0.64%	1.44%	0.45%

Risk and Volatility

Extreme Networks has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, Viasat has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extreme Networks	0	2	7	0	2.78
Viasat	1	2	7	1	2.73

Extreme Networks currently has a consensus target price of $32.25, indicating a potential upside of 41.88%. Viasat has a consensus target price of $90.67, indicating a potential upside of 18.70%. Given Extreme Networks’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Extreme Networks is more favorable than Viasat.

Insider & Institutional Ownership

91.0% of Extreme Networks shares are owned by institutional investors. Comparatively, 86.0% of Viasat shares are owned by institutional investors. 3.6% of Extreme Networks shares are owned by insiders. Comparatively, 1.4% of Viasat shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Extreme Networks beats Viasat on 12 of the 14 factors compared between the two stocks.

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.

About Viasat

Viasat, Inc. provides broadband and communications products and services worldwide. The company's Satellite Services segment offers satellite-based fixed broadband services, including broadband internet access and voice over internet protocol services to consumers and businesses; in-flight entertainment and aviation software services to commercial airlines and private business jets; satellite-based connectivity services; mobile broadband services, including satellite-based internet services to energy offshore vessels, cruise ships, consumer ferries, and yachts; and energy services, which include ultra-secure solutions IP connectivity, bandwidth-optimized over-the-top applications, industrial internet-of-things big data enablement, and industry-leading machine learning analytics. Its Commercial Networks segment offers fixed broadband satellite communication systems comprising satellite network infrastructure and ground terminals; mobile broadband satellite communication systems; antenna systems for terrestrial and satellite applications, such as earth imaging, remote sensing, mobile satellite communication, Ka-band earth stations, and other multi-band antennas; and space systems design and satellite networking development systems. The company's Government Systems segment offers government mobile broadband products and services include mobile broadband modems, and terminals and network access control systems; mesh and hub-and-spoke satellite networking systems; secure networking, cybersecurity, and information assurance products; and tactical data link solutions. It designs and development of satellite and ground communications systems and network function virtualization, as well as ground-based network subsystems, as well as space system design and development products and services include architectures for GEO, MEO, LEO satellites, and other satellite platforms. The company was incorporated in 1986 and is headquartered in Carlsbad, California.