Riverbed Technology (RVBD) vs. Oclaro (OCLR) Critical Analysis

Oclaro (NASDAQ: OCLR) and Riverbed Technology (NASDAQ:RVBD) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Risk and Volatility

Oclaro has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Riverbed Technology has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Oclaro and Riverbed Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oclaro 0 3 10 1 2.86
Riverbed Technology 0 0 0 0 N/A

Oclaro currently has a consensus target price of $10.54, indicating a potential upside of 53.40%. Given Oclaro’s higher possible upside, analysts clearly believe Oclaro is more favorable than Riverbed Technology.

Earnings & Valuation

This table compares Oclaro and Riverbed Technology’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oclaro $600.97 million 1.93 $127.85 million $0.82 8.38
Riverbed Technology N/A N/A N/A $0.44 47.70

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

Profitability

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

Net Margins Return on Equity Return on Assets
Oclaro 23.00% 23.17% 17.91%
Riverbed Technology 17.55% 24.83% 10.64%

Insider and Institutional Ownership

65.6% of Oclaro shares are owned by institutional investors. 2.0% of Oclaro shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Oclaro beats Riverbed Technology on 9 of the 12 factors compared between the two stocks.

About Oclaro

Oclaro, Inc. is a provider of optical components, modules and subsystems for the core optical transport, service provider, enterprise and data center markets. The Company provides various solutions for optical networks and interconnects driving the next wave of streaming video, cloud computing, application virtualization and other bandwidth-intensive and high-speed applications. The Company’s product offerings include client side transceivers, line side transceivers, tunable laser transmitters, lithium niobate modulators, transponder modules, and discrete lasers and receivers. It designs, manufactures and markets optical components, modules and subsystems that generate, detect, combine and separate light signals in optical communications networks. The Company supplies transmission products at the component level and the module level into 10 gigabits per second (Gb/s), 40 Gb/s and 100 Gb/s communications solutions.

About Riverbed Technology

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.

Receive News & Ratings for Oclaro Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Oclaro and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply