Calix (NYSE: CALX) and Emulex (NYSE:ELX) 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 dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Calix $510.37 million 0.68 -$83.03 million ($1.65) -4.15
Emulex N/A N/A N/A ($0.96) -8.32

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

Institutional and Insider Ownership

64.9% of Calix shares are owned by institutional investors. 16.5% of Calix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Calix and Emulex, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calix 0 1 1 0 2.50
Emulex 0 0 0 0 N/A

Calix presently has a consensus price target of $6.50, indicating a potential downside of 5.11%. Given Calix’s higher probable upside, equities analysts plainly believe Calix is more favorable than Emulex.

Profitability

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

Net Margins Return on Equity Return on Assets
Calix -16.27% -48.53% -24.11%
Emulex -61.34% -54.64% -34.34%

Summary

Calix beats Emulex on 8 of the 9 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 Emulex

Emulex Corporation (Emulex) is a provider of network connectivity, monitoring and management products. It provides solutions for networks that support enterprise, cloud, government and telecommunications sectors. The Company’s portfolio of input/output (I/O) connectivity offerings, including the line of Ethernet and Fiber Channel-based connectivity products, has been designed into server and storage solutions. Its monitoring and management solutions include its network visibility and recording products. The Company’s network connectivity, monitoring and management solutions are offered through two business segments: Connectivity Segment and the Visibility Segment. The Connectivity Segment comprises the Company’s Emulex products, and network connectivity products (NCP) and storage connectivity and other products (SCOP). Its Visibility Segment comprises its Network Visibility Products (NVP).

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