Silicom (NASDAQ:SILC – Get Free Report) and Vistance Networks (NASDAQ:VISN – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Silicom and Vistance Networks, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Silicom | 1 | 0 | 1 | 0 | 2.00 |
| Vistance Networks | 0 | 4 | 0 | 0 | 2.00 |
Silicom currently has a consensus target price of $60.00, suggesting a potential upside of 22.13%. Vistance Networks has a consensus target price of $19.33, suggesting a potential upside of 199.97%. Given Vistance Networks’ higher probable upside, analysts clearly believe Vistance Networks is more favorable than Silicom.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Silicom | $61.93 million | 4.56 | -$11.48 million | ($1.71) | -28.73 |
| Vistance Networks | $1.93 billion | 0.77 | $2.28 billion | $30.80 | 0.21 |
Vistance Networks has higher revenue and earnings than Silicom. Silicom is trading at a lower price-to-earnings ratio than Vistance Networks, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
52.8% of Silicom shares are held by institutional investors. Comparatively, 88.0% of Vistance Networks shares are held by institutional investors. 25.4% of Silicom shares are held by company insiders. Comparatively, 3.5% of Vistance Networks shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Silicom and Vistance Networks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Silicom | -12.98% | -8.37% | -6.26% |
| Vistance Networks | 247.69% | 32.28% | 4.61% |
Volatility & Risk
Silicom has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Vistance Networks has a beta of 2.39, meaning that its stock price is 139% more volatile than the S&P 500.
Summary
Vistance Networks beats Silicom on 10 of the 13 factors compared between the two stocks.
About Silicom
Silicom Ltd., together with its subsidiaries, designs, manufactures, markets, and supports networking and data infrastructure solutions for servers, server-based systems, and communications devices. It offers server network interface cards; and smart cards, such as smart server adapters, which include redirector and switching cards, encryption and data compression hardware acceleration cards, forward error correction acceleration and offloading cards, time synchronization cards, and field programmable gate array-based cards. The company also provides virtualized and universal customer-premises equipment; and edge devices for SD-WAN, secure access service edge, Telco dedicated routers, and NFV deployments. It serves original equipment manufacturing, cloud, telco, mobile, and related service provider markets. The company operates in the United States, North America, Israel, Europe, and the Asia Pacific. Silicom Ltd. was incorporated in 1987 and is headquartered in Kfar Saba, Israel.
About Vistance Networks
CommScope Holding Company, Inc. provides infrastructure solutions for communications and entertainment networks. It operates through four segments: Broadband Networks (Broadband), Outdoor Wireless Networks (OWN), Venue and Campus Networks (VCN), and Home Networks (Home). The Broadband segment provides converged cable access platforms, passive optical networking products, video systems, access technologies, fiber and coaxial cables, fiber and copper connectivity products, and hardened closures to the telco and cable provider broadband market. The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, Spectrum Access System, and Comsearch products to the macro and metro cell markets. The VCN segment offers Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells, enterprise fiber, and copper infrastructures for campuses, venues, data centers, and buildings. The Home segment provides devices and related software, and management solutions that offer residential connectivity and services to subscribers, such as digital subscriber lines, cable modems, and telephony and data gateways; and set top boxes and software that support cable, satellite, and Internet protocol television content delivery, which include digital video recorders, high definition set top boxes, and hybrid set top devices. It offers its products and services through specialized resellers and distributors, satellite video distributors, and system integrators, as well as directly to customers in the United States, Europe, the Middle East, Africa, the Asia Pacific, the Caribbean, Latin America, and Canada. The company was formerly known as Cedar I Holding Company, Inc. and changed its name to CommScope Holding Company, Inc. in January 2011. CommScope Holding Company, Inc. was founded in 1976 and is headquartered in Hickory, North Carolina.
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