Contrasting AmpliTech Group (NASDAQ:AMPG) and Viavi Solutions (NASDAQ:VIAV)

AmpliTech Group (NASDAQ:AMPG) 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 profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Valuation and Earnings

This table compares AmpliTech Group and Viavi Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AmpliTech Group	$9.51 million	9.67	-$11.24 million	($0.62)	-7.21
Viavi Solutions	$1.08 billion	2.62	$34.80 million	$0.16	79.81

Viavi Solutions has higher revenue and earnings than AmpliTech Group. AmpliTech Group is trading at a lower price-to-earnings ratio than Viavi Solutions, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

AmpliTech Group has a beta of -0.98, indicating that its share price is 198% less volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Insider & Institutional Ownership

11.0% of AmpliTech Group shares are held by institutional investors. Comparatively, 95.5% of Viavi Solutions shares are held by institutional investors. 29.8% of AmpliTech Group shares are held by insiders. Comparatively, 1.5% of Viavi Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AmpliTech Group	-44.65%	-26.65%	-21.36%
Viavi Solutions	3.21%	8.02%	3.14%

Analyst Ratings

This is a summary of recent recommendations and price targets for AmpliTech Group and Viavi Solutions, as reported by MarketBeat.com.

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

Viavi Solutions has a consensus price target of $13.50, suggesting a potential upside of 5.72%. Given Viavi Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Viavi Solutions is more favorable than AmpliTech Group.

Summary

Viavi Solutions beats AmpliTech Group on 12 of the 14 factors compared between the two stocks.

About AmpliTech Group

AmpliTech Group, Inc. designs, engineers, and assembles micro-wave component-based amplifiers. The company’s products include radio frequency (RF) amplifiers and related subsystems, such as low noise amplifiers for use in receivers of various communication systems comprising Wi-Fi, radar, satellite, base station, cell phone, radio, etc.; and medium power amplifiers that provide enhanced output power and gain in transceiver chains. It provides specialty microwave block downconverters used as a test device on satellite access point antennas; specialty microwave 1:2 Tx protection switch panels that is used in satellite communication earth stations; desktop/benchtop and compact wideband power amplifiers used in SATCOM rack mount systems, as well as test equipment used in integrators and manufacturers of various communications systems, such as cellular base stations, simulators, and point to point wireless radios; and waveguide to coaxial adapters for SATCOM and satellite internet gateway systems. In addition, the company offers cryogenic amplifiers for quantum computing, medical, RF imaging, research and development, space communications, accelerators, radiometry, and telephony applications; and cryogenic and non-cryogenic 4g/5g small cell subsystems for high-speed networks and airline Wi-Fi systems. Further, it provides custom assembly designs and non-recurring engineering services on a project-by-project basis, as well as IC packaging and lids products. The company serves aerospace, government, defense, commercial satellite, and wireless industries through sales representatives and distributors in the United States, Europe, the Middle East, and South Asia. AmpliTech Group, Inc. was founded in 2002 and is based in Hauppauge, New York.

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.