Calix (NYSE: CALX) and West Corp (NASDAQ:WSTC) 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 profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Dividends

West Corp pays an annual dividend of $0.45 per share and has a dividend yield of 1.9%. Calix does not pay a dividend. West Corp pays out 17.9% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Calix and West Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Calix $458.79 million 0.69 -$27.40 million ($1.63) -3.83
West Corp N/A N/A N/A $2.52 9.33

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

Analyst Recommendations

This is a summary of current ratings and price targets for Calix and West Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calix 0 2 0 0 2.00
West Corp 0 5 0 0 2.00

Calix currently has a consensus price target of $6.50, suggesting a potential upside of 4.00%. West Corp has a consensus price target of $24.50, suggesting a potential upside of 4.26%. Given West Corp’s higher probable upside, analysts plainly believe West Corp is more favorable than Calix.

Profitability

This table compares Calix and West Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Calix -16.19% -43.76% -22.97%
West Corp 7.79% N/A 5.18%

Institutional & Insider Ownership

65.0% of Calix shares are held by institutional investors. Comparatively, 67.4% of West Corp shares are held by institutional investors. 16.5% of Calix shares are held by company insiders. Comparatively, 4.6% of West Corp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

West Corp beats Calix on 7 of the 10 factors compared between the two stocks.

About Calix

Calix, Inc. provides broadband communications access systems and software for fiber- and copper-based network architectures that enable communications service providers (CSPs), to transform their networks and connect to their residential and business subscribers. The Company enables CSPs to provide various services, from basic voice and data to advanced broadband services, over legacy and next-generation access networks. It develops and sells carrier-class hardware and cloud products. Its portfolio consists of three core systems and/or nodes: E-Series access systems and nodes (E-Series systems and nodes), B6 access nodes (B-Series nodes), and the C7 multiservice, multiprotocol access system (C-Series system). These systems and nodes are complemented by the P-Series optical network terminals and residential gateways, the GigaFamily of GigaCenters, GigaHubs, and GigaPoints, the Calix Management System, OpenLink Cable software and Compass Cloud family of software-as-a-service products.

About West Corp

West Corporation is a provider of communication and network infrastructure services. The Company helps its clients communicate, collaborate and connect with their audiences through a portfolio of solutions that include unified communications services, safety services, and interactive services, such as automated notifications, specialized agent services and telecom services. The Company’s segments include Unified Communications Services, which includes collaboration services, Unified Communications as a Service (UCaaS) and telecom services; Safety Services, which includes carrier services, government solutions and advanced services; Interactive Services, including outbound (proactive notifications-voice, text/short messaging service (SMS) and chat), inbound speech solutions (interactive voice response or IVR), Web, mobile and professional services, and Specialized Agent Services, which includes healthcare advocacy services, cost management services and revenue generation.

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