Head to Head Comparison: Extreme Networks (NASDAQ:EXTR) versus UTStarcom (NASDAQ:UTSI)

Extreme Networks (NASDAQ:EXTR) and UTStarcom (NASDAQ:UTSI) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Extreme Networks and UTStarcom, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extreme Networks	0	2	7	0	2.78
UTStarcom	1	0	0	0	1.00

Extreme Networks presently has a consensus price target of $32.25, indicating a potential upside of 37.12%. Given Extreme Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Extreme Networks is more favorable than UTStarcom.

Profitability

This table compares Extreme Networks and UTStarcom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extreme Networks	3.28%	88.88%	6.32%
UTStarcom	N/A	N/A	N/A

Valuation & Earnings

This table compares Extreme Networks and UTStarcom”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extreme Networks	$1.28 billion	2.40	$42.12 million	$0.31	75.87
UTStarcom	$8.98 million	2.49	-$7.95 million	N/A	N/A

Extreme Networks has higher revenue and earnings than UTStarcom.

Institutional & Insider Ownership

91.0% of Extreme Networks shares are held by institutional investors. Comparatively, 1.8% of UTStarcom shares are held by institutional investors. 3.6% of Extreme Networks shares are held by insiders. Comparatively, 2.7% of UTStarcom shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Extreme Networks has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, UTStarcom has a beta of -0.05, indicating that its share price is 105% less volatile than the S&P 500.

Summary

Extreme Networks beats UTStarcom on 11 of the 12 factors compared between the two stocks.

About Extreme Networks

Extreme Networks, Inc. delivers cloud-driven networking solutions that leverage the powers of machine learning, artificial intelligence, analytics, and automation.
The company designs, develops, and manufactures wired and wireless network infrastructure equipment and develops the software for network management, policy, analytics, security, and access controls. Over 50,000 customers globally trust their end-to-end, cloud-driven networking solutions and rely on our top-rated services and support to accelerate their digital transformation efforts.

About UTStarcom

UTStarcom Holdings Corp. operates as a telecom infrastructure provider to develop technology for bandwidth from cloud-based services, mobile, streaming, and other applications in China, India, Japan, and internationally. Its products include converged packet transport, disaggregated router platform, packet transport network, packet aggregation network, multi-services access network, fiber to the X, carrier Wi-Fi solutions, and software defined network controller products. The company also offers packet optical and network synchronization products. It serves telecommunications operators and equipment distributors. The company was founded in 1991 and is based in Hangzhou, the People's Republic of China.