A10 Networks (NYSE:ATEN) vs. VTEX (NYSE:VTEX) Financial Analysis

A10 Networks (NYSE:ATEN) and VTEX (NYSE:VTEX) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for A10 Networks and VTEX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
A10 Networks	0	5	2	0	2.29
VTEX	0	6	2	0	2.25

A10 Networks presently has a consensus target price of $30.38, suggesting a potential upside of 19.34%. VTEX has a consensus target price of $4.60, suggesting a potential upside of 8.36%. Given A10 Networks’ stronger consensus rating and higher probable upside, equities analysts clearly believe A10 Networks is more favorable than VTEX.

Insider & Institutional Ownership

98.6% of A10 Networks shares are held by institutional investors. Comparatively, 63.7% of VTEX shares are held by institutional investors. 1.2% of A10 Networks shares are held by company insiders. Comparatively, 40.9% of VTEX shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares A10 Networks and VTEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
A10 Networks	13.85%	23.63%	8.09%
VTEX	11.98%	12.98%	8.76%

Risk & Volatility

A10 Networks has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, VTEX has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Valuation & Earnings

This table compares A10 Networks and VTEX”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
A10 Networks	$290.56 million	6.36	$42.14 million	$0.60	42.42
VTEX	$240.52 million	3.01	$20.01 million	$0.16	26.53

A10 Networks has higher revenue and earnings than VTEX. VTEX is trading at a lower price-to-earnings ratio than A10 Networks, indicating that it is currently the more affordable of the two stocks.

Summary

A10 Networks beats VTEX on 11 of the 13 factors compared between the two stocks.

About A10 Networks

A10 Networks, Inc. provides networking solutions in the Americas, Japan, rest of Asia Pacific, Europe, the Middle East, and Africa. The company offers Thunder Application Delivery Controller that provides advanced server load balancing; Thunder Carrier Grade Networking, which provides standards-compliant address and protocol translation services between varying types of internet protocol addresses; Thunder Secure Sockets Layer (SSL) Insight that decrypts SSL-encrypted traffic and forwards it to a third-party security device for deep packet inspection; and Thunder Convergent Firewall, which addresses multiple critical security capabilities in one package. It also provides intelligent management and automation tool comprising harmony controller that provides intelligent management, automation, and analytics for secure application delivery. In addition, the company offers A10 Defend Threat Control, a standalone SaaS platform; A10 Defend Orchestrator provides a centralized point of control for seamless distributed denial of service (DDoS) defense management and execution; A10 Defend Detector, a Netflow, Sflow, IPFIX-based DDoS detector used to easily manage the scale and heterogenous nature of SP networks; and A10 Defend Mitigator, a precision, automated, scalable, and intelligent DDoS mitigation solution. It delivers its solutions in optimized hardware appliances, bare metal software, containerized software, virtual appliances, and cloud-native software forms. The company serves cloud providers; cloud, telecommunications, and multiple system and cable service providers; government organizations; and enterprises in the telecommunications, technology, industrial, government, retail, financial, gaming, and education industries. It markets its products through sales organizations; and distribution channel partners, such as distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California.

About VTEX

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.