UTStarcom (UTSI) versus Iteris (ITI) Critical Contrast

UTStarcom (NASDAQ: UTSI) and Iteris (NASDAQ:ITI) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares UTStarcom and Iteris’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UTStarcom N/A N/A N/A
Iteris -3.40% -10.29% -6.52%

Analyst Recommendations

This is a summary of recent recommendations for UTStarcom and Iteris, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UTStarcom 0 0 1 0 3.00
Iteris 0 0 4 0 3.00

UTStarcom presently has a consensus price target of $5.00, suggesting a potential upside of 18.20%. Iteris has a consensus price target of $9.13, suggesting a potential upside of 83.97%. Given Iteris’ higher probable upside, analysts plainly believe Iteris is more favorable than UTStarcom.

Volatility & Risk

UTStarcom has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Iteris has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500.

Earnings & Valuation

This table compares UTStarcom and Iteris’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UTStarcom $98.29 million 1.53 $6.98 million N/A N/A
Iteris $103.73 million 1.59 -$3.52 million ($0.04) -124.00

UTStarcom has higher earnings, but lower revenue than Iteris.

Institutional & Insider Ownership

26.5% of UTStarcom shares are held by institutional investors. Comparatively, 30.1% of Iteris shares are held by institutional investors. 2.7% of UTStarcom shares are held by company insiders. Comparatively, 4.3% of Iteris shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Iteris beats UTStarcom on 6 of the 11 factors compared between the two stocks.

About UTStarcom

UTStarcom Holdings Corp., together with its subsidiaries, operates as a telecom infrastructure provider to develop technology for bandwidth from cloud-based services, mobile, streaming, and other applications. The company offers broadband packet optical transport and wireless/fixed-line access products and solutions. It focuses on delivering carrier-class broadband transport and access products and solutions optimized for mobile backhaul, metro aggregation, broadband access, Wi-Fi data, and value added services. The company provides optical transport products, such as packet transport network, next generation packet transport network, and SyncRing product lines that convert and translate data, video, voice, or other traffic into an optical signal that is transmitted over glass fiber; and SOO network (software-defined open packet optical) solution, which helps telecom operators to address the challenges related to the growth of mobile and cloud services, media streaming, and social networking, as well as new applications and services. It also offers carrier Wi-Fi products, such as solutions for managed wireless access networks, including wireless access controllers, VAS platforms, network management systems, and Wi-Fi access points for carrier and MSO markets, as well as various deployment scenarios; and a range of services, such as IPTV, high-speed Internet access, POTS, ISDN, VoIP, over twisted pair copper, and optical fiber. The company was founded in 1991 and is based in Admiralty, Hong Kong.

About Iteris

Iteris, Inc. provides intelligent information solutions to traffic management and global agribusiness markets worldwide. It operates in three segments: Roadway Sensors, Transportation Systems, and Agriculture and Weather Analytics. The Roadway Sensors segment provides vehicle detection and information systems and products for traffic intersection control, incident detection, and roadway traffic data collection applications. Its products include Vantage detection system to detect vehicle presence at intersections, as well as vehicle count, speed, and other traffic data used in traffic management systems; Vantage Vector video/radar hybrid product, an vehicle detection sensor with capabilities, including stop bar detection, advanced-zone detection, and sensing; Vantage systems equipped with smartcycle capability to differentiate between bicycles and other vehicles with a single video detection camera; VersiCam, an integrated camera and processor video detection system; VantageLive!, a cloud-based subscription service; and SmartSpan, PedTrax ,Velocity, VantageLive, and P-series products. The Transportation Systems segment offers transportation engineering and consulting services with a focus on the planning, design, development, and implementation of software-based systems that integrate sensors, video surveillance systems, computers, and communications equipment to enable public agencies to monitor, control, and direct traffic flow; assist in the dispatch of emergency crews; and distribute real-time information about traffic conditions. It offers iPeMS, a specialized transportation performance measurement and traffic analytics solution. The Agriculture and Weather Analytics segment offers ClearPath Weather management tools that allow users to create solutions to meet roadway maintenance decision needs; and ClearAg, a precision agriculture solution. The company serves government agencies. Iteris, Inc. was founded in 1969 and is headquartered in Santa Ana, California.

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