Harmonic (NASDAQ:HLIT) versus Veea (NASDAQ:VEEA) Financial Analysis

Harmonic (NASDAQ:HLIT) and Veea (NASDAQ:VEEA) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility & Risk

Harmonic has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Veea has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Insider and Institutional Ownership

99.4% of Harmonic shares are held by institutional investors. Comparatively, 25.9% of Veea shares are held by institutional investors. 1.7% of Harmonic shares are held by insiders. Comparatively, 60.8% of Veea shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Harmonic and Veea”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmonic	$570.80 million	2.25	-$43.31 million	($0.37)	-32.00
Veea	$220,000.00	36.34	-$6.66 million	($0.37)	-0.43

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Harmonic and Veea, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmonic	1	3	2	0	2.17
Veea	1	0	0	0	1.00

Harmonic presently has a consensus target price of $16.60, suggesting a potential upside of 40.20%. Given Harmonic’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Harmonic is more favorable than Veea.

Profitability

This table compares Harmonic and Veea’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harmonic	-7.50%	7.84%	4.30%
Veea	N/A	N/A	-46.79%

Summary

Harmonic beats Veea on 8 of the 13 factors compared between the two stocks.

About Harmonic

Harmonic Inc., together with its subsidiaries, provides broadband solutions worldwide. The company operates through Broadband and Video segments. The Broadband segment sells broadband access solutions and related services, including cOS software-based broadband access solutions to broadband operators; and cOS central cloud services, a subscription service for cOS customers. The Video segment sells video processing, production, and playout solutions and services to cable operators, and satellite and telco Pay-TV service providers, as well as to broadcast and media, including streaming media companies. Its video processing appliance solutions include network management and application software, and hardware products, such as encoders, video servers, high-density stream processing systems, and edge processors. This segment also provides VOS360 SaaS platform that provides both streaming and channel origination and distribution services; and software-as-a-service (SaaS) solutions, which enables the packaging and delivery of streaming services, including live streaming, VOD, catch-up TV, start-over TV, network-DVR and cloud-DVR services through HTTP streaming to various device along with dynamic and personal ad insertion. The company also provides technical support and professional services, such as maintenance and support, consulting, implementation, integration services, program management, technical design and planning, building and site preparation, integration and equipment installation, end-to-end system testing, and training, as well as SaaS-related support and deployment. It sells its products through its direct sales force, as well as through independent resellers and systems integrators. The company was incorporated in 1988 and is headquartered in San Jose, California.

About Veea

Veea Inc. provides computing, multiaccess multiprotocol communications, edge storage, and cybersecurity solutions. The company offers multiaccess edge computing (MEC) platform that redefines connectivity and computing at the edge by integrating functions of servers, network attached storage (NAS), routers, firewalls, Wi-Fi Access Points, IoT gateways, and 4G and 5G connections; and Veea Edge Platform enables direct connections from the optical fiber, cellular, and satellite networks. It also provides VeeaHub STAX, an edge computing product integrated with wireless access, including Wi-Fi 6; VeeaHub that offers connectivity options for pro indoor smart edge applications; and VeeaHub Outdoor that integrates with wireless connectivity for smart edge applications in outdoor and industrial environments. The company also offers TROLLEE, a smart shopping cart platform; the VeeaHub toolkit; and Veea AdEdge, an advertising platform. Veea Inc. was founded in 2014 and is headquartered in New York, New York.