Analyzing Harris (HRS) and Riverbed Technology (RVBD)

Harris (NYSE: HRS) and Riverbed Technology (NASDAQ:RVBD) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Harris and Riverbed Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Harris 9.02% 23.36% 6.52%
Riverbed Technology 17.55% 24.83% 10.64%

Valuation & Earnings

This table compares Harris and Riverbed Technology’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Harris $5.90 billion 2.97 $553.00 million $4.48 32.86
Riverbed Technology N/A N/A N/A $0.44 47.70

Harris has higher revenue and earnings than Riverbed Technology. Harris is trading at a lower price-to-earnings ratio than Riverbed Technology, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Harris has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Riverbed Technology has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.

Dividends

Harris pays an annual dividend of $2.28 per share and has a dividend yield of 1.5%. Riverbed Technology does not pay a dividend. Harris pays out 50.9% of its earnings in the form of a dividend. Harris has raised its dividend for 16 consecutive years.

Insider & Institutional Ownership

84.3% of Harris shares are owned by institutional investors. 1.9% of Harris shares are owned by 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Harris and Riverbed Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harris 0 1 5 0 2.83
Riverbed Technology 0 0 0 0 N/A

Harris currently has a consensus price target of $144.17, suggesting a potential downside of 2.07%. Given Harris’ higher possible upside, analysts plainly believe Harris is more favorable than Riverbed Technology.

Summary

Harris beats Riverbed Technology on 8 of the 14 factors compared between the two stocks.

Harris Company Profile

Harris Corporation is a technology company that provides products, systems and services that have defense and civil government applications, as well as commercial applications. It offers its products and services to government and commercial customer. It operates in four segments: Communication Systems, which serves markets in tactical communications and defense, and public safety networks; Space and Intelligence Systems, which provides complete Earth observation, environmental, geospatial, space protection, and intelligence solutions from advanced sensors and payloads, as well as ground processing and information analytics; Electronic Systems, which offers a portfolio of solutions in electronic warfare, avionics, wireless and technology, among others, and Critical Networks, which provides managed services supporting air traffic management, energy and maritime communications, and ground network operation and sustainment, as well as information technology (IT) and engineering services.

Riverbed Technology Company Profile

Riverbed Technology, Inc. (Riverbed) is a provider of application performance infrastructure. The Company offers a platform to deliver, control and optimize IT resources across the hybrid enterprise. The Riverbed Application Performance Platform delivers application performance infrastructure solutions with a focus on two areas, which include application acceleration and performance management. The Wide area network (WAN) optimization for application acceleration includes Riverbed SteelHead, which provides WAN optimization solution, and Riverbed SteelFusion, which provides branch converged infrastructure. The Company’s application acceleration solutions also include Riverbed SteelApp, an application delivery controller (ADC). The Company’s performance management solution includes Riverbed SteelCentral, a performance management suite that combines its application-aware network performance management and application performance management control suite.

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