ADTRAN (NASDAQ: ADTN) and Velti (OTCMKTS:VELTF) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Earnings & Valuation
This table compares ADTRAN and Velti’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ADTRAN||$666.58 million||1.14||$23.84 million||$0.50||31.30|
Risk and Volatility
ADTRAN has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Velti has a beta of 4.06, suggesting that its share price is 306% more volatile than the S&P 500.
This table compares ADTRAN and Velti’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ADTRAN pays an annual dividend of $0.36 per share and has a dividend yield of 2.3%. Velti does not pay a dividend. ADTRAN pays out 72.0% of its earnings in the form of a dividend.
Insider and Institutional Ownership
93.0% of ADTRAN shares are held by institutional investors. 3.0% of ADTRAN shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings for ADTRAN and Velti, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ADTRAN currently has a consensus target price of $20.75, suggesting a potential upside of 32.59%. Given ADTRAN’s higher possible upside, equities analysts plainly believe ADTRAN is more favorable than Velti.
ADTRAN beats Velti on 9 of the 11 factors compared between the two stocks.
ADTRAN, Inc. provides networking and communications equipment worldwide. The company operates through two segments, Network Solutions and Services & Support. It offers access and aggregation solutions, including network management and subscriber services control and orchestration software within a SD-access architecture; SDN-controlled programmable network elements; fiber to the premises and fiber to the node (FTTN) multi-service access nodes (MSAN); fiber aggregation and FTTN MSAN; fiber to the distribution point optical network units; optical line terminals; optical networking edge aggregation; and IP digital subscriber line access multiplexers. The company's access and aggregation solutions also comprise cabinet and outside-plant enclosures and services; pluggable optical transceivers, cables, and other miscellaneous materials; and other products and services. In addition, it provides customer devices comprising broadband customer premise solutions, such as passive optical network and point-to-point Ethernet optical network terminals; radio frequency over glass micro nodes; residential and business gateways; Wi-Fi access points and related powering and switching infrastructure; enterprise session border controllers; carrier Ethernet services termination devices; voice over Internet protocol media gateways; and other products and services. Further, the company offers time division multiplexed and asynchronous transfer mode based aggregation systems and customer devices; HDSL, ADSL, and other technologies; and other products and services. Additionally, it provides planning, engineering, program management, maintenance, support, installation, commissioning, and implementation services. The company serves communications service providers, distributed enterprises and small and medium-sized businesses, public and private enterprises, and individual users. ADTRAN, Inc. was founded in 1985 and is headquartered in Huntsville, Alabama.
Velti PLC is a mobile marketing and advertising technology company. The Company offers Velti, a global marketing platform that connects brands with consumers around the world. The Company delivers mobile marketing solutions to consumers. The Company’s products include Inspire, Excite and 5ML. The Company’s solutions use mobile, social and traditional channels to drive consumer actions from prepaid and postpaid mobile customers. The Company builds mobile sites and applications that can be optimized for over 6,000 types of mobile devices. The Company allows users to create mobile communities from scratch or import existing communities and establish mobile as the primary channel for instant and personalized brand interactions. The Company offers its mobile marketing solutions for mobile operators, fast-moving consumer goods (FMCG) and media. Its Loyal-Me for operators is a cross-channel loyalty program developed to change subscriber behavior and drive key performance indicators (KPIs).
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