UTStarcom (NASDAQ:UTSI – Get Free Report) and Extreme Networks (NASDAQ:EXTR – Get Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Profitability
This table compares UTStarcom and Extreme Networks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| UTStarcom | N/A | N/A | N/A |
| Extreme Networks | 3.28% | 88.88% | 6.32% |
Volatility & Risk
UTStarcom has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, Extreme Networks has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| UTStarcom | 1 | 0 | 0 | 0 | 1.00 |
| Extreme Networks | 0 | 2 | 7 | 0 | 2.78 |
Extreme Networks has a consensus target price of $32.25, suggesting a potential upside of 35.08%. Given Extreme Networks’ stronger consensus rating and higher possible upside, analysts plainly believe Extreme Networks is more favorable than UTStarcom.
Insider & Institutional Ownership
1.8% of UTStarcom shares are owned by institutional investors. Comparatively, 91.0% of Extreme Networks shares are owned by institutional investors. 2.7% of UTStarcom shares are owned by company insiders. Comparatively, 3.6% of Extreme Networks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares UTStarcom and Extreme Networks”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| UTStarcom | $8.98 million | 2.58 | -$7.95 million | N/A | N/A |
| Extreme Networks | $1.28 billion | 2.43 | $42.12 million | $0.31 | 77.02 |
Extreme Networks has higher revenue and earnings than UTStarcom.
Summary
Extreme Networks beats UTStarcom on 11 of the 12 factors compared between the two stocks.
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.
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.
Receive News & Ratings for UTStarcom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for UTStarcom and related companies with MarketBeat.com's FREE daily email newsletter.
