Westell Technologies (OTCMKTS:WSTL) vs. Viavi Solutions (NASDAQ:VIAV) Financial Analysis

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

Earnings & Valuation

This table compares Westell Technologies 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
Westell Technologies	$29.96 million	3.70	-$10.10 million	($0.56)	-12.52
Viavi Solutions	$1.52 billion	6.03	$34.80 million	($0.15)	-260.93

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Westell Technologies	-30.99%	-18.79%	-15.09%
Viavi Solutions	-2.00%	19.60%	7.48%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Westell Technologies and Viavi Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westell Technologies	0	0	0	0	0.00
Viavi Solutions	1	2	6	0	2.56

Viavi Solutions has a consensus target price of $49.88, suggesting a potential upside of 27.43%. Given Viavi Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Viavi Solutions is more favorable than Westell Technologies.

Institutional and Insider Ownership

10.9% of Westell Technologies shares are held by institutional investors. Comparatively, 95.5% of Viavi Solutions shares are held by institutional investors. 24.6% of Westell Technologies shares are held by insiders. Comparatively, 1.8% of Viavi Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Westell Technologies has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Summary

Viavi Solutions beats Westell Technologies on 12 of the 14 factors compared between the two stocks.

About Westell Technologies

Westell Technologies, Inc., through its subsidiary, Westell, Inc., designs and distributes telecommunications products to telephone companies in the United States. The company operates through three segments: In-Building Wireless (IBW), Intelligent Site Management (ISM), and Communications Network Solutions (CNS). The IBW segment offers distributed antenna system conditioners; digital repeaters; battery backup units; and system components and antennas, including couplers, duplexers, splitters, filters, and tappers for commercial and public safety in-building wireless systems. The ISM segment provides a suite of remote units, which provide machine-to-machine communications that enable operators to remotely monitor, manage, and control site infrastructure and support systems. The CNS segment provides a range of indoor and outdoor network infrastructure, such as integrated cabinets, power distribution products, copper and fiber connectivity products, and T1 network interface units. The company serves wireless and wireline service providers, multiple systems operators, Internet service providers, systems integrators, neutral host operators, and distributors through field sales organization, distributors, and partners. Westell Technologies, Inc. was founded in 1980 and is headquartered in Aurora, Illinois.

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.