Critical Analysis: Samsara (NYSE:IOT) vs. Calix (NYSE:CALX)

Samsara (NYSE:IOT) and Calix (NYSE:CALX) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Profitability

This table compares Samsara and Calix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Samsara	-2.79%	-3.49%	-1.91%
Calix	1.79%	2.31%	1.92%

Earnings and Valuation

This table compares Samsara and Calix”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Samsara	$1.25 billion	12.63	-$154.91 million	($0.08)	-341.69
Calix	$1.00 billion	3.54	$17.88 million	$0.25	213.38

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

Volatility and Risk

Samsara has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Calix has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Samsara and Calix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Samsara	1	5	10	2	2.72
Calix	1	1	6	1	2.78

Samsara currently has a consensus target price of $47.25, indicating a potential upside of 72.86%. Calix has a consensus target price of $77.50, indicating a potential upside of 45.28%. Given Samsara’s higher possible upside, equities research analysts plainly believe Samsara is more favorable than Calix.

Institutional & Insider Ownership

96.0% of Samsara shares are held by institutional investors. Comparatively, 98.1% of Calix shares are held by institutional investors. 46.5% of Samsara shares are held by insiders. Comparatively, 16.9% of Calix 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.

Summary

Calix beats Samsara on 8 of the 15 factors compared between the two stocks.

About Samsara

Samsara Inc. provides solutions that connects physical operations data to its connected operations cloud in the United States and internationally. The company's Connected Operations Cloud includes Data Platform, which ingests, aggregates, and enriches data from its IoT devices and has embedded capabilities for AI, workflows and analytics, alerts, API connections, and data security and privacy. Its applications include video-based safety that enables customers to build a safety program and protect their teams with AI-enabled video; vehicle telematics which provides visibility into real-time vehicle location and diagnostics with GPS tracking, routing and dispatch, fuel efficiency management, electric vehicle usage and charge planning, preventative maintenance, and insights to manage fuel and energy costs; and mobile apps and workflows that improves productivity for frontline workers and enables regulatory compliance for workers to see upcoming jobs, capture electronic documents, perform maintenance inspections, maintain compliance logs, and message with back-office administration. The company also provides equipment monitoring which offers visibility and management of unpowered and powered assets, ranging from generators and compressors to heavy construction equipment and trailers to improve operating efficiency, prevent unplanned downtime, and avoid critical safety and compliance issues; and site visibility that provides remote visibility into sites to improve onsite security, safety, and incident response times. It serves transportation, wholesale and retail trade, construction, field services, logistics, utilities and energy, healthcare and education, manufacturing, food and beverage, and other industries, as well as government. Samsara Inc. was incorporated in 2015 and is headquartered in San Francisco, California.

About Calix

Calix, Inc., together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. The company provides Calix Cloud platform, a role-based analytics platform comprising Calix Engagement Cloud, Calix Service Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application, such as CommandIQ for residents and CommandWorx for businesses; Calix Intelligent Access EDGE, an access network solution for automated and intelligent networks; and Calix Revenue EDGE, a premises solution for subscriber managed services. It also offers SmartLife managed services, including SmartHome managed services and applications to enhance, operate and secure the connected experience of subscribers in their home; SmartTown managed services that reimagine community Wi-Fi as a ubiquitous, secure, and managed experience across a BSP's footprint; and SmartBiz managed services that address the business networking and productivity needs of business owners with an all-in-one managed service. In addition, the company provides Wi-Fi systems under GigaSpire and GigaPro brands to be ready for deployment as a complete subscriber experience solution for BSP's residential and business subscribers. It offers its products through its direct sales force and resellers. The company was incorporated in 1999 and is headquartered in San Jose, California.