Viavi Solutions (NASDAQ:VIAV) versus Powerstorm (OTCMKTS:PSTO) Critical Survey

Powerstorm (OTCMKTS:PSTO) and Viavi Solutions (NASDAQ:VIAV) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Insider and Institutional Ownership

95.5% of Viavi Solutions shares are held by institutional investors. 1.5% of Viavi Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Powerstorm and Viavi Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Powerstorm	N/A	N/A	N/A	N/A	N/A
Viavi Solutions	$1.08 billion	2.51	$34.80 million	$0.16	76.31

Viavi Solutions has higher revenue and earnings than Powerstorm.

Volatility & Risk

Powerstorm has a beta of -1.58, suggesting that its stock price is 258% less volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Powerstorm	N/A	N/A	N/A
Viavi Solutions	3.21%	8.02%	3.14%

Analyst Ratings

This is a summary of recent recommendations for Powerstorm and Viavi Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Powerstorm	0	0	0	0	0.00
Viavi Solutions	0	3	6	0	2.67

Viavi Solutions has a consensus price target of $13.50, indicating a potential upside of 10.57%. Given Viavi Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Viavi Solutions is more favorable than Powerstorm.

Summary

Viavi Solutions beats Powerstorm on 10 of the 10 factors compared between the two stocks.

About Powerstorm

Powerstorm Holdings, Inc. operates a consortium of privately held sustainability-themed companies acquired for growth. Its scope of action targets SMEs in 5 themes, including real estate and heritage, telecom and fiber, power and alternative energy, food and aquatic innovation, and electric mobility. The company was incorporated in 2011 and is based in Dover, Delaware.

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.