Critical Comparison: Aviat Networks (NASDAQ:AVNW) vs. Ubiquiti (NASDAQ:UI)

Aviat Networks (NASDAQ:AVNWGet Rating) and Ubiquiti (NASDAQ:UIGet Rating) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Valuation & Earnings

This table compares Aviat Networks and Ubiquiti’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aviat Networks $274.91 million 1.18 $110.14 million $1.63 17.79
Ubiquiti $1.90 billion 7.63 $616.58 million $7.05 34.00

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

Profitability

This table compares Aviat Networks and Ubiquiti’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aviat Networks 6.55% 15.65% 9.59%
Ubiquiti 25.51% -632.62% 49.77%

Analyst Ratings

This is a breakdown of recent ratings for Aviat Networks and Ubiquiti, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aviat Networks 0 0 4 0 3.00
Ubiquiti 0 0 0 0 N/A

Aviat Networks currently has a consensus price target of $51.33, suggesting a potential upside of 77.01%. Given Aviat Networks’ higher possible upside, analysts plainly believe Aviat Networks is more favorable than Ubiquiti.

Institutional and Insider Ownership

57.5% of Aviat Networks shares are held by institutional investors. Comparatively, 5.3% of Ubiquiti shares are held by institutional investors. 3.7% of Aviat Networks shares are held by insiders. Comparatively, 90.1% of Ubiquiti shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Aviat Networks has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, Ubiquiti has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Summary

Ubiquiti beats Aviat Networks on 8 of the 13 factors compared between the two stocks.

Aviat Networks Company Profile (Get Rating)

Aviat Networks, Inc. provides wireless transport solutions worldwide. It offers a comprehensive suite of products and localized professional and support services enabling customers to simplify their networks and lives. The company's products and solutions include wireless transmission systems for microwave and millimeter wave networking applications. It serves communications service providers and private network operators, including state/local government, utility, federal government, and defense organizations. The company markets its products through a direct sales, service, and support organization; indirect sales channels comprising dealers, resellers, and sales representatives; and through online. Aviat Networks, Inc. was incorporated in 2006 and is headquartered in Austin, Texas.

Ubiquiti Company Profile (Get Rating)

Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers. It develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products, as well as consumer products under the Ubiquiti Labs brand name. The company also provides technology platforms, such as airMAX, which include proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a software and system routing platform; airFiber, a point-to-point radio system; and UFiber GPON, a plug and play fiber network technology to build high speed fiber internet networks. In addition, it offers UniFi -Enterprise WLAN, an enterprise Wi-Fi system that allows for on-site and remote management through the cloud; UniFi Protect, a video surveillance system, which provides statistical reporting and advanced analytics; UniFi Switch that deliver performance, switching, and power of Ethernet support for enterprise networks; UniFi Console, an enterprise class router and security gateway device; and UniFi Access, a door access system. Further, offers base stations, radios, backhaul equipment, and customer premise equipment; embedded radio products; antennas; and mounting brackets, cables, and power over Ethernet adapters. It serves customers through a network of approximately 100 distributors, online retailers, and direct to customers worldwide. The company was formerly known as Ubiquiti Networks, Inc. and changed its name to Ubiquiti Inc. in August 2019. Ubiquiti Inc. was incorporated in 2003 and is headquartered in New York, New York.

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