Critical Survey: AltiGen Communications (OTCMKTS:ATGN) & Viavi Solutions (NASDAQ:VIAV)

AltiGen Communications (OTCMKTS:ATGN) and Viavi Solutions (NASDAQ:VIAV) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

95.5% of Viavi Solutions shares are owned by institutional investors. 14.0% of AltiGen Communications shares are owned by company insiders. Comparatively, 1.8% of Viavi Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AltiGen Communications	18.15%	8.98%	7.47%
Viavi Solutions	3.21%	8.02%	3.14%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for AltiGen Communications and Viavi Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AltiGen Communications	0	0	0	0	0.00
Viavi Solutions	0	4	6	0	2.60

Viavi Solutions has a consensus target price of $13.72, suggesting a potential upside of 5.47%. Given Viavi Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Viavi Solutions is more favorable than AltiGen Communications.

Risk & Volatility

AltiGen Communications has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Earnings & Valuation

This table compares AltiGen Communications and Viavi Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AltiGen Communications	$13.62 million	1.18	$1.56 million	$0.09	6.89
Viavi Solutions	$1.08 billion	2.67	$34.80 million	$0.16	81.31

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

Summary

Viavi Solutions beats AltiGen Communications on 9 of the 14 factors compared between the two stocks.

About AltiGen Communications

Altigen Communications, Inc. designs, develops, markets, and supports integrated communications solutions worldwide. It provides MaxCS IP-PBX, a software-based phone system that provides customers with business communications solutions; MaxACD Voice Over Internet Protocol (VoIP) Contact Center, a software-based automatic call distribution engine, which offers call routing and call distribution options; MaxMobile that extends a set of business PBX functionality to smart phone devices; and MaxCommunicator, a Windows-based desktop application, which provides call control and visual voice mail management to the desktop. The company offers MaxAgent, a Windows-based desktop application to bring call control and workgroup information to call center agents; MaxSupervisor, a Windows-based desktop application for call center supervisors; and MaxACD for Skype, a call center solution. In addition, it provides hosted services, which include hosted IP PBX, Skype for Business, session initiation protocol trunk, call center solution, voice and video calling, conference calling, and various long-distance services; and software assurance services, which offer customers with software updates, patches, new releases, and technical support for the applications they are licensed to use. The company serves financial services, healthcare, retail, and business services industries through a channel of distributors and resellers. Altigen Communications, Inc. was incorporated in 1994 and is based in Milpitas, California.

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.