Head-To-Head Contrast: Ciena (CIEN) & DASAN Zhone Solutions (DZSI)

Ciena (NYSE: CIEN) and DASAN Zhone Solutions (NASDAQ:DZSI) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Earnings & Valuation

This table compares Ciena and DASAN Zhone Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ciena $2.80 billion 1.29 $1.26 billion $1.49 17.01
DASAN Zhone Solutions $247.11 million 0.65 $1.07 million N/A N/A

Ciena has higher revenue and earnings than DASAN Zhone Solutions.

Institutional & Insider Ownership

10.8% of DASAN Zhone Solutions shares are held by institutional investors. 1.4% of Ciena shares are held by insiders. Comparatively, 65.3% of DASAN Zhone Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Ciena and DASAN Zhone Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ciena 0 3 19 0 2.86
DASAN Zhone Solutions 0 0 0 0 N/A

Ciena presently has a consensus price target of $29.60, suggesting a potential upside of 16.79%. Given Ciena’s higher possible upside, equities research analysts clearly believe Ciena is more favorable than DASAN Zhone Solutions.

Risk & Volatility

Ciena has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, DASAN Zhone Solutions has a beta of 3.69, indicating that its stock price is 269% more volatile than the S&P 500.

Profitability

This table compares Ciena and DASAN Zhone Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ciena 26.69% 9.92% 4.78%
DASAN Zhone Solutions 1.91% 6.78% 2.97%

Summary

Ciena beats DASAN Zhone Solutions on 8 of the 12 factors compared between the two stocks.

About Ciena

Ciena Corporation provides hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of voice, video, and data traffic on communications networks worldwide. The company's Networking Platforms segment offers hardware networking solutions optimized for the convergence of coherent optical transport, optical transport network switching, and packet switching. Its products include 6500 Packet-Optical Platform and the 5430 Reconfigurable Switching System, Waveserver stackable interconnect system, CoreDirector Multiservice Optical Switches, and OTN configuration for the 5410 Reconfigurable Switching System, as well as Z-Series Packet-Optical Platform; 3000 family of service delivery switches and service aggregation switches, and the 5000 family of service aggregation switches, as well as 8700 Packetwave Platform and the Ethernet packet configuration for the 5410 Service Aggregation Switch; and 4200 Advanced Services Platform, 5100/5200 Advanced Services Platform, Common Photonic Layer, and 6100 Multiservice Optical Platform. This segment also sells operating system software and enhanced software features embedded in each of its products. The company's Software and Software-Related Services segment offers network management solutions, including the OneControl Unified Management System, ON-Center Network & Service Management Suite, Ethernet Services Manager, Optical Suite Release, and Planet Operate; and Blue Planet network virtualization, service orchestration, and network management software platform, as well as related installation, support, and consulting services. Its Global Services segment provides consulting and network design, installation and deployment, maintenance support, and training services. The company sells its products through direct and indirect sales channels to network operators. Ciena Corporation was founded in 1992 and is headquartered in Hanover, Maryland.

About DASAN Zhone Solutions

DASAN Zhone Solutions, Inc. provides network access solutions and communications equipment for service provider and enterprise networks worldwide. It offers broadband access products, including customer premise equipment, such as digital subscriber line (DSL) modems; Ethernet access demarcation devices; and gigabit passive optical network (GPON) and 10G point-to-point active Ethernet optical network terminals. The company also provides central office products, such as broadband loop carriers for DSL and voice-grade telephone service; DSL access multiplexers (DSLAMs); optical line terminals for passive optical distribution networks like GPONs; and 10G passive optical networks and 10G point-to-point active Ethernet. In addition, it offers Ethernet switching products; mobile backhaul products comprising standard Ethernet/IP or multiprotocol label switching interfaces; software defined networks and network function virtualization tools and building blocks; and passive optical LAN products consisting of integrated power over Ethernet units. The company was formerly known as Zhone Technologies, Inc. and changed its name to DASAN Zhone Solutions, Inc. as a result of merger with Dasan Network Solutions, Inc. in September 2016. The company was incorporated in 1999 and is headquartered in Oakland, California. DASAN Zhone Solutions, Inc. is a subsidiary of DASAN Networks, Inc.

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