Critical Survey: Sierra Wireless (SWIR) vs. Ciena Corporation (CIEN)
Sierra Wireless (NASDAQ: SWIR) and Ciena Corporation (NYSE:CIEN) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.
Earnings & Valuation
This table compares Sierra Wireless and Ciena Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sierra Wireless||$651.88 million||1.07||$42.36 million||$0.62||35.32|
|Ciena Corporation||$2.72 billion||1.15||$345.32 million||$0.92||23.98|
Ciena Corporation has higher revenue and earnings than Sierra Wireless. Ciena Corporation is trading at a lower price-to-earnings ratio than Sierra Wireless, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Sierra Wireless has a beta of 3.12, meaning that its stock price is 212% more volatile than the S&P 500. Comparatively, Ciena Corporation has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.
This is a breakdown of recent recommendations for Sierra Wireless and Ciena Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sierra Wireless currently has a consensus price target of $23.89, indicating a potential upside of 9.08%. Ciena Corporation has a consensus price target of $29.72, indicating a potential upside of 34.74%. Given Ciena Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Ciena Corporation is more favorable than Sierra Wireless.
Institutional and Insider Ownership
25.1% of Sierra Wireless shares are held by institutional investors. 2.0% of Sierra Wireless shares are held by insiders. Comparatively, 1.5% of Ciena Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Sierra Wireless and Ciena Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ciena Corporation beats Sierra Wireless on 10 of the 14 factors compared between the two stocks.
About Sierra Wireless
Sierra Wireless, Inc. is engaged in building the Internet of Things (IoT) with wireless solutions for organizations. The Company’s OEM Solution segment offers cellular embedded wireless modules for IoT connectivity, including an embedded application framework to support customer applications. The Company’s Enterprise Solution segment offers intelligent routers and gateways, including management tools and applications that enable cellular connectivity. The Company’s Cloud and Connectivity Services segment offers a cloud based platform for deploying and managing IoT applications, Smart SIM supported by mobile core networks, and managed wireless broadband services to enable customer IoT deployments. The Company offers a portfolio of second generation, third generation, and fourth generation cellular embedded wireless modules and gateways, integrated with its secure cloud and connectivity services. The Company offers its products to original equipment manufacturers (OEMs) and enterprises.
About Ciena Corporation
Ciena Corporation is a network strategy and technology company, which provides solutions that enable a range of network operators to adopt communication architectures and deliver an array of services, relied upon by enterprise and consumer end users. It provides equipment, software and services that support the transport, switching, aggregation, service delivery and management of voice, video and data traffic on communications networks. It segments include Networking Platforms; Software and Software-Related Services, and Global Services. The Networking Platforms segment consists of Converged Packet Optical, Packet Networking and Optical Transport product portfolios. The software business is engaged in the development and licensing of element and network management software and software-related services that support its hardware offerings. It offers a suite of consulting and support services that help its customers to design, optimize, deploy and maintain their communications networks.
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