Comparing Extreme Networks (NASDAQ:EXTR) and FalconStor Software (OTCMKTS:FALC)

Extreme Networks (NASDAQ:EXTR) and FalconStor Software (OTCMKTS:FALC) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Earnings and Valuation

This table compares Extreme Networks and FalconStor Software”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extreme Networks	$1.12 billion	2.09	-$85.96 million	($0.41)	-42.74
FalconStor Software	$10.42 million	1.03	$690,000.00	($0.14)	-10.71

FalconStor Software has lower revenue, but higher earnings than Extreme Networks. Extreme Networks is trading at a lower price-to-earnings ratio than FalconStor Software, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Extreme Networks and FalconStor Software, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extreme Networks	0	2	4	0	2.67
FalconStor Software	0	0	0	0	0.00

Extreme Networks presently has a consensus target price of $18.92, suggesting a potential upside of 7.95%. Given Extreme Networks’ stronger consensus rating and higher probable upside, research analysts plainly believe Extreme Networks is more favorable than FalconStor Software.

Profitability

This table compares Extreme Networks and FalconStor Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extreme Networks	-4.94%	13.79%	0.59%
FalconStor Software	8.43%	-4.90%	8.01%

Institutional and Insider Ownership

91.1% of Extreme Networks shares are owned by institutional investors. Comparatively, 9.5% of FalconStor Software shares are owned by institutional investors. 3.7% of Extreme Networks shares are owned by company insiders. Comparatively, 52.8% of FalconStor Software shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Extreme Networks has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, FalconStor Software has a beta of 3.02, meaning that its share price is 202% more volatile than the S&P 500.

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.

About FalconStor Software

FalconStor Software, Inc., a storage software company, enables enterprise customers and managed service providers to secure, migrate, and protect their data worldwide. It offers FalconStor Virtual Tape Library, a software that emulates and replaces cumbersome physical tape libraries for archive related data preservation without being replacing their enterprise backup and archive software and associated processes; FalconStor StorSafe, a long-term archive data management software; FalconStor Continuous Data Protector delivers instant data availability, and reliable recovery; and FalconStor Network Storage Server for data storage virtualization and business continuity in heterogeneous environments. The company also provides FalconStor StorSigh, a long-term archive and business continuity driven data replication from one centralized management point; FalconStor RecoverTrac Disaster Recovery Technology that streamlines the implementation, testing, and execution of disaster recovery operations; and FalconStor MicroScanTM Technology, which minimizes the amount of data transferred during replication by eliminating inefficiencies at the application and file system layer. It sells its products through authorized partners, value-added resellers, solution providers, system integrators, direct market resellers, distributors, managed service providers, cloud service providers, and original equipment manufacturers, as well as directly to customers. The company was incorporated in 1994 and is headquartered in Austin, Texas.