Reviewing Alvarion (ALVRQ) & ADTRAN (ADTN)

Alvarion (OTCMKTS:ALVRQ) and ADTRAN (NASDAQ:ADTN) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Valuation & Earnings

This table compares Alvarion and ADTRAN’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alvarion N/A N/A N/A N/A N/A
ADTRAN $666.58 million 1.00 $23.84 million $0.89 15.64

ADTRAN has higher revenue and earnings than Alvarion.

Risk & Volatility

Alvarion has a beta of -0.14, indicating that its stock price is 114% less volatile than the S&P 500. Comparatively, ADTRAN has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Alvarion and ADTRAN, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alvarion 0 0 0 0 N/A
ADTRAN 0 6 2 0 2.25

ADTRAN has a consensus price target of $17.71, indicating a potential upside of 27.22%. Given ADTRAN’s higher probable upside, analysts plainly believe ADTRAN is more favorable than Alvarion.

Institutional and Insider Ownership

94.3% of ADTRAN shares are held by institutional investors. 1.0% of Alvarion shares are held by company insiders. Comparatively, 2.5% of ADTRAN shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

ADTRAN pays an annual dividend of $0.36 per share and has a dividend yield of 2.6%. Alvarion does not pay a dividend. ADTRAN pays out 40.4% of its earnings in the form of a dividend.

Profitability

This table compares Alvarion and ADTRAN’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alvarion N/A N/A N/A
ADTRAN -3.94% -2.20% -1.61%

Summary

ADTRAN beats Alvarion on 7 of the 11 factors compared between the two stocks.

Alvarion Company Profile

Alvarion Ltd. provides autonomous Wi-Fi network products worldwide. The company designs solutions for carrier Wi-Fi, enterprise connectivity, smart city, smart hospitality, and connected campuses and events. It offers BreezeACCESS, a wireless broadband access solution for license-exempt frequencies; BreezeMAX Extreme, a WiMAX 16e wireless broadband technology; BreezeNET, a point-to-point and point-to-multipoint networking solution for connecting buildings, campuses, industrial zones, and remote sites; and BreezeULTRA, a family of wireless broadband products that operate in the 4.9–5.9 GHz unlicensed frequency band. The company also provides WBS and WBSn, which are carrier-grade outdoor Wi-Fi base stations; WBSac, a carrier-grade Wi-Fi solution for buildings, workplaces, universities, schools, hospitals, hotels, and large stores; Arena Controller, a Wi-Fi cloud controller that acts as mediation device between the operator's control core and the Wi-Fi infrastructure; and Star Management Suite, a set of carrier-class tools, which support the wireless broadband life-cycle – from initial installation to full service provision, and ongoing maintenance and support activities. It serves carriers, local governments, and hospitality sectors. The company was formerly known as BreezeCOM Ltd. and changed its name to Alvarion Ltd. as result of merger with Floware Wireless Systems Ltd. in August 2001. The company was founded in 1992 and is headquartered in Herzliya, Israel. Alvarion Ltd. is a subsidiary of SuperCom Ltd.

ADTRAN Company Profile

ADTRAN, Inc. provides networking and communications equipment worldwide. The company operates through two segments, Network Solutions and Services & Support. It offers access and aggregation solutions, including network management and subscriber services control and orchestration software within a SD-access architecture; SDN-controlled programmable network elements; fiber to the premises and fiber to the node (FTTN) multi-service access nodes (MSAN); fiber aggregation and FTTN MSAN; fiber to the distribution point optical network units; optical line terminals; optical networking edge aggregation; and IP digital subscriber line access multiplexers. The company's access and aggregation solutions also comprise cabinet and outside-plant enclosures and services; pluggable optical transceivers, cables, and other miscellaneous materials; and other products and services. In addition, it provides customer devices comprising broadband customer premise solutions, such as passive optical network and point-to-point Ethernet optical network terminals; radio frequency over glass micro nodes; residential and business gateways; Wi-Fi access points and related powering and switching infrastructure; enterprise session border controllers; carrier Ethernet services termination devices; voice over Internet protocol media gateways; and other products and services. Further, the company offers time division multiplexed and asynchronous transfer mode based aggregation systems and customer devices; HDSL, ADSL, and other technologies; and other products and services. Additionally, it provides planning, engineering, program management, maintenance, support, installation, commissioning, and implementation services. The company serves communications service providers, distributed enterprises and small and medium-sized businesses, public and private enterprises, and individual users. ADTRAN, Inc. was founded in 1985 and is headquartered in Huntsville, Alabama.

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