Contrasting A10 Networks (ATEN) and F5 Networks (FFIV)

A10 Networks (NYSE: ATEN) and F5 Networks (NASDAQ:FFIV) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Risk and Volatility

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A10 Networks has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, F5 Networks has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares A10 Networks and F5 Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A10 Networks -6.94% -17.63% -7.12%
F5 Networks 19.79% 35.98% 17.83%

Institutional & Insider Ownership

62.2% of A10 Networks shares are held by institutional investors. Comparatively, 94.3% of F5 Networks shares are held by institutional investors. 31.6% of A10 Networks shares are held by company insiders. Comparatively, 0.3% of F5 Networks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares A10 Networks and F5 Networks’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
A10 Networks $230.00 million 1.81 -$20.94 million ($0.30) -19.57
F5 Networks $2.09 billion 4.16 $420.76 million $6.46 21.78

F5 Networks has higher revenue and earnings than A10 Networks. A10 Networks is trading at a lower price-to-earnings ratio than F5 Networks, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for A10 Networks and F5 Networks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A10 Networks 0 2 1 0 2.33
F5 Networks 1 16 6 0 2.22

A10 Networks presently has a consensus target price of $7.75, suggesting a potential upside of 32.03%. F5 Networks has a consensus target price of $139.32, suggesting a potential downside of 0.99%. Given A10 Networks’ stronger consensus rating and higher probable upside, analysts clearly believe A10 Networks is more favorable than F5 Networks.

Summary

F5 Networks beats A10 Networks on 10 of the 13 factors compared between the two stocks.

A10 Networks Company Profile

A10 Networks, Inc. provides software and hardware solutions in the United States, Japan, and internationally. The company's products are built on advanced core operating system platform. It offers application delivery controllers that provide advanced server load balancing; lightning application delivery service, a cloud-native software-as-a-service platform designed to boost the delivery and security of applications and micro services; and carrier grade networking address translation product that offer network address and protocol translation services for service provider networks. The company also provides threat protection systems for the protection of networks and server resources against massive distributed denial of service attacks; secure sockets layer insight that decrypts secure sockets layer-encrypted traffic and forwards it to a third-party security device, such as a firewall, for deep packet inspection; and convergent firewall, which consolidates multiple critical security capabilities in one package by consolidating multiple security and networking functions in a single appliance. Its solutions enable cloud providers, Web-scale companies, service providers, government organizations, and enterprises to secure and optimize the performance of their data center and cloud applications; and secure their users, applications, and infrastructure from Internet, Web, and network threats. The company delivers its solutions on optimized hardware appliances, bare metal software, virtual appliances, and cloud-native software. It serves telecommunications, technology, industrial, retail, financial, gaming, and education industries. The company markets its products through sales organizations, as well as distribution channel partners, including distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California.

F5 Networks Company Profile

F5 Networks, Inc. develops, markets, and sells application delivery networking products that optimize the security, performance, and availability of network applications, servers, and storage systems. The company's primary application delivery technology is Traffic Management Operating System (TMOS) that enable company's products to intercept, inspect, and act on the contents of traffic from virtually each type of Internet Protocol-enabled application. It offers Local Traffic Manager, which provides intelligent load-balancing, traffic management, and application health checking; BIG-IP DNS that automatically directs users to the closest or best-performing physical, virtual, or cloud environment; Advanced Firewall Manager, a network firewall; and Application Security Manager, an Web application firewall that provides comprehensive, proactive, and application-layer protection against generalized and targeted attacks. The company also provides Access Policy Manager, which provides secure, granular, and context-aware access to networks and applications; Carrier-Grade Network Address Translation, which offers a set of tools that enables service providers to migrate to IPv6 while continuing to support and interoperate with existing IPv4 devices and content; and Policy Enforcement Manager that offers traffic classification capabilities to identify the specific applications and services to service providers, as well as Link Controller. In addition, it offers cloud-based and other subscription services; BIG-IP appliances; VIPRION chassis-based systems; BIG-IP Virtual Edition software platform; and management and orchestration software platform. The company sells its products to enterprise customers and service providers through distributors, value-added resellers, and systems integrators in the Americas, Europe, the Middle East, Africa, Japan, and the Asia Pacific Region. F5 Networks, Inc. was founded in 1996 and is headquartered in Seattle, Washington.

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