Critical Survey: Viavi Solutions (NASDAQ:VIAV) & Veea (NASDAQ:VEEA)

Viavi Solutions (NASDAQ:VIAV) and Veea (NASDAQ:VEEA) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Viavi Solutions	-2.00%	19.60%	7.48%
Veea	N/A	N/A	-41.65%

Earnings and Valuation

This table compares Viavi Solutions and Veea”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viavi Solutions	$1.52 billion	4.93	-$30.40 million	($0.15)	-202.81
Veea	$220,000.00	69.41	-$6.66 million	($5.20)	-0.94

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

Volatility and Risk

Viavi Solutions has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Veea has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viavi Solutions	1	2	6	0	2.56
Veea	1	0	0	0	1.00

Viavi Solutions presently has a consensus target price of $55.43, suggesting a potential upside of 82.20%. Given Viavi Solutions’ stronger consensus rating and higher possible upside, research analysts plainly believe Viavi Solutions is more favorable than Veea.

Institutional and Insider Ownership

95.5% of Viavi Solutions shares are held by institutional investors. Comparatively, 25.9% of Veea shares are held by institutional investors. 1.2% of Viavi Solutions shares are held by company insiders. Comparatively, 60.8% of Veea shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Viavi Solutions beats Veea on 9 of the 14 factors compared between the two stocks.

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.

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.