Ixia (NASDAQ: XXIA) and Lumentum Holdings (NASDAQ:LITE) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.
Valuation and Earnings
This table compares Ixia and Lumentum Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lumentum Holdings||$1.00 billion||3.19||$144.13 million||($1.69)||-30.74|
Lumentum Holdings has higher revenue and earnings than Ixia. Lumentum Holdings is trading at a lower price-to-earnings ratio than Ixia, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Ixia has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Lumentum Holdings has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.
Institutional & Insider Ownership
63.6% of Ixia shares are owned by institutional investors. Comparatively, 95.1% of Lumentum Holdings shares are owned by institutional investors. 24.4% of Ixia shares are owned by insiders. Comparatively, 0.8% of Lumentum Holdings shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Ixia and Lumentum Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Ixia and Lumentum Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ixia presently has a consensus price target of $19.65, indicating a potential upside of 0.00%. Lumentum Holdings has a consensus price target of $64.36, indicating a potential upside of 23.88%. Given Lumentum Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Lumentum Holdings is more favorable than Ixia.
Lumentum Holdings beats Ixia on 10 of the 12 factors compared between the two stocks.
Ixia Company Profile
Ixia is a provider of physical and virtual network application performance and security resilience solutions. The Company’s product solutions consist of its hardware platforms, software applications and services, including warranty and maintenance offerings. The Company helps its customers to validate the performance and security resilience of their applications and networks. The Company offers network test hardware platforms with interchangeable interfaces, using a common set of applications and Application Programing Interfaces (APIs). The Company provides its solutions to network equipment manufacturers (NEMs), service providers, and enterprise and government organizations. The Company’s product solutions consist of its hardware platforms, such as chassis, interface cards and appliances, software application tools, and services, including its warranty and maintenance offerings and professional services.
Lumentum Holdings Company Profile
Lumentum Holdings Inc. is a provider of optical and photonic products for a range of end market applications, including data communications (Datacom) and telecommunications (Telecom) networking and commercial lasers (commercial lasers) for manufacturing, inspection and life-science applications. The Company operates in two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The Company’s OpComms products include a range of components, modules and subsystems to support and maintain customers in its two primary markets: Telecom and Datacom. The Company’s Lasers products serve customers in markets and applications, such as manufacturing, biotechnology, graphics and imaging, remote sensing, and precision machining, such as drilling in printed circuit boards, wafer singulation and solar cell scribing. The Company’s customers include original equipment manufacturers (OEMs).
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