Plantronics (PLT) vs. Emulex (NYSE:ELX) Head to Head Analysis

Emulex (NYSE: ELX) and Plantronics (NYSE:PLT) are both small-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares Emulex and Plantronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emulex -61.34% -54.64% -34.34%
Plantronics 1.03% 22.22% 8.11%

Analyst Ratings

This is a summary of recent recommendations for Emulex and Plantronics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emulex 0 0 0 0 N/A
Plantronics 0 2 2 0 2.50

Plantronics has a consensus target price of $60.00, suggesting a potential upside of 6.27%. Given Plantronics’ higher probable upside, analysts clearly believe Plantronics is more favorable than Emulex.

Dividends

Plantronics pays an annual dividend of $0.60 per share and has a dividend yield of 1.1%. Emulex does not pay a dividend. Plantronics pays out 25.2% of its earnings in the form of a dividend.

Insider & Institutional Ownership

91.0% of Plantronics shares are held by institutional investors. 3.2% of Plantronics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Emulex and Plantronics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Emulex N/A N/A N/A ($0.96) -8.32
Plantronics $881.18 million 2.12 $82.59 million $2.38 23.72

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

Summary

Plantronics beats Emulex on 11 of the 12 factors compared between the two stocks.

Emulex Company Profile

Emulex Corporation (Emulex) is a provider of network connectivity, monitoring and management products. It provides solutions for networks that support enterprise, cloud, government and telecommunications sectors. The Company’s portfolio of input/output (I/O) connectivity offerings, including the line of Ethernet and Fiber Channel-based connectivity products, has been designed into server and storage solutions. Its monitoring and management solutions include its network visibility and recording products. The Company’s network connectivity, monitoring and management solutions are offered through two business segments: Connectivity Segment and the Visibility Segment. The Connectivity Segment comprises the Company’s Emulex products, and network connectivity products (NCP) and storage connectivity and other products (SCOP). Its Visibility Segment comprises its Network Visibility Products (NVP).

Plantronics Company Profile

Plantronics, Inc. (Plantronics) is engaged in the design, manufacture, and distribution of headsets for business and consumer applications, and other specialty products for the hearing impaired. The Company is a global designer, manufacturer and marketer of communications headsets, telephone headset systems, other communication endpoints and accessories for the business and consumer markets. The Company develops communication products for offices and contact centers, mobile devices, cordless phones, and computers and gaming consoles. Its product categories include Enterprise, which includes corded and cordless communication headsets, audio processors, and telephone systems, and Consumer, which includes Bluetooth and corded products for mobile device applications, personal computer (PC) and gaming headsets, and specialty products marketed for hearing impaired individuals. It offers its products under two brands: Plantronics and Clarity.

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