Financial Comparison: Nokia (NOK) and Casa Systems (CASA)

Nokia (NYSE: NOK) and Casa Systems (NASDAQ:CASA) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Valuation and Earnings

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This table compares Nokia and Casa Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nokia $26.15 billion 1.19 -$1.69 billion $0.37 14.92
Casa Systems $351.58 million 7.04 $88.50 million $0.79 38.41

Casa Systems has lower revenue, but higher earnings than Nokia. Nokia is trading at a lower price-to-earnings ratio than Casa Systems, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

6.6% of Nokia shares are held by institutional investors. Comparatively, 54.3% of Casa Systems shares are held by institutional investors. 64.4% of Casa Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Nokia and Casa Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nokia -6.37% 10.80% 4.54%
Casa Systems N/A N/A N/A

Dividends

Nokia pays an annual dividend of $0.13 per share and has a dividend yield of 2.4%. Casa Systems does not pay a dividend. Nokia pays out 35.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and price targets for Nokia and Casa Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nokia 1 9 6 0 2.31
Casa Systems 0 2 5 0 2.71

Nokia currently has a consensus target price of $5.54, indicating a potential upside of 0.34%. Casa Systems has a consensus target price of $24.50, indicating a potential downside of 19.25%. Given Nokia’s higher probable upside, research analysts plainly believe Nokia is more favorable than Casa Systems.

Summary

Casa Systems beats Nokia on 8 of the 14 factors compared between the two stocks.

Nokia Company Profile

Nokia Corporation, together with its subsidiaries, provides network infrastructure and related services worldwide. The company operates through three segments: Ultra Broadband Networks, IP Networks and Applications, and Nokia Technologies. It offers mobile networking solutions, such as hardware, software, and services for telecommunications operators, enterprises, and related markets/verticals; radio access network solutions; Internet protocol multimedia subsystem/voice over LTE, subscriber data management and other virtualized software infrastructure solutions; backhaul solutions; and network planning, implementation, operations, and maintenance solutions. The company also provides fixed networking solutions, including copper based solutions, such as VDSL2 Vectoring, Vplus, and G.fast; fiber-to-the-home solutions, such as Ethernet point-to-point, gigabit passive optical networks (GPON), EPON, and 10 gigabit next generation fiber technologies, as well as fiber access technologies; digital home devices; and copper and fiber broadband evolution, public switched telephone network transformation, ultra-broadband network design, deployment and operation, site implementation and outside plant, and multi-vendor maintenance services. In addition, it offers IP/optical networking solutions, such as IP routing and optical transport systems, software, and services; and packet-optimized and optical transport solutions. Further, the company provides software solutions, including customer experience management, network operations and management, communications and collaborations, policy and charging, as well as Cloud, Internet of Things, security, and analytics platforms; and submarine networks and radio frequency systems. Nokia Corporation was founded in 1865 and is headquartered in Espoo, Finland.

Casa Systems Company Profile

Casa Systems, Inc. provides software-centric broadband products in North America, Latin America, Europe, the Middle East, Africa, and Asia-Pacific. The company offers converged cable access platform solutions that allow cable service providers to deliver voice, video, and data services over a single platform at multi-gigabit speeds. It also provides solutions for next-generation distributed and virtualized architectures in cable operator, fixed telecom, and wireless networks. The company was founded in 2003 and is headquartered in Andover, Massachusetts.

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