Head to Head Survey: Aerohive Networks (NYSE:HIVE) vs. TESSCO Technologies (TESS)

Aerohive Networks (NYSE: HIVE) and TESSCO Technologies (NASDAQ:TESS) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Earnings & Valuation

This table compares Aerohive Networks and TESSCO Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerohive Networks $169.82 million 1.86 -$36.91 million ($0.50) -11.78
TESSCO Technologies $533.29 million 0.33 $1.44 million $0.34 62.50

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

Risk and Volatility

Aerohive Networks has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, TESSCO Technologies has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Aerohive Networks and TESSCO Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 1 4 0 2.80
TESSCO Technologies 0 0 0 0 N/A

Aerohive Networks currently has a consensus price target of $6.31, indicating a potential upside of 7.13%. Given Aerohive Networks’ higher probable upside, equities research analysts clearly believe Aerohive Networks is more favorable than TESSCO Technologies.

Insider & Institutional Ownership

46.1% of Aerohive Networks shares are held by institutional investors. Comparatively, 58.3% of TESSCO Technologies shares are held by institutional investors. 26.2% of Aerohive Networks shares are held by insiders. Comparatively, 26.9% of TESSCO Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Aerohive Networks and TESSCO Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aerohive Networks -17.00% -103.45% -18.90%
TESSCO Technologies 0.51% 3.09% 1.80%

Dividends

TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 3.8%. Aerohive Networks does not pay a dividend. TESSCO Technologies pays out 235.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

TESSCO Technologies beats Aerohive Networks on 10 of the 15 factors compared between the two stocks.

About Aerohive Networks

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

About TESSCO Technologies

TESSCO Technologies Incorporated architects and delivers the product and value chain solutions to organizations responsible for building, operating, maintaining and reselling cellular, mobile communications, wireless-fidelity (Wi-Fi), machine-to-machine, Internet of Things and wireless backhaul systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing Internet and information technology. Its customers include a diversified mix of carrier and public network operators, tower owners, program managers, contractors and integrators, wireless Internet service providers, industrial and enterprise self-maintained users (including railroads, utilities, mining operators, oil and gas operators and technicians), governments, manufacturers, value-added resellers, tier 1, 2 and 3 retail carrier stores and their independent agents, dealers and consumers, as well as other local and national retailers.

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