CSR (NASDAQ: CSRE) and NeoPhotonics (NYSE:NPTN) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Insider and Institutional Ownership

81.1% of NeoPhotonics shares are owned by institutional investors. 17.3% of NeoPhotonics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares CSR and NeoPhotonics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CSR N/A N/A N/A
NeoPhotonics -11.37% -13.61% -7.46%

Volatility and Risk

CSR has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, NeoPhotonics has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Valuation & Earnings

This table compares CSR and NeoPhotonics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CSR N/A N/A N/A N/A N/A
NeoPhotonics $411.42 million 0.74 -$200,000.00 ($0.87) -8.00

CSR has higher earnings, but lower revenue than NeoPhotonics.

Analyst Recommendations

This is a summary of current ratings and target prices for CSR and NeoPhotonics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSR 0 0 0 0 N/A
NeoPhotonics 0 3 5 1 2.78

NeoPhotonics has a consensus target price of $8.67, suggesting a potential upside of 24.52%. Given NeoPhotonics’ higher probable upside, analysts plainly believe NeoPhotonics is more favorable than CSR.

Summary

NeoPhotonics beats CSR on 7 of the 10 factors compared between the two stocks.

CSR Company Profile

CSR Limited (CSR), formerly CSR plc, is engaged in the development of multifunction semiconductor platforms and technologies for the automotive, consumer, and voice and music categories. The Company’s products include aptX, aptX Enhanced, aptX Live, aptX Low Latency, ARMmbed Platform, BlueCore5 Multimedia, BlueCore4-Ext, Bluetooth Smart CSR101x Product Family, Entry-Level Soundbar Platform, BlueCore CSR8811 WLCSP, BlueCore BC6130, BlueCore CSRB5348, CSR Positioning Centre, CSR Synergy, CSR8605, CSRA65700 QFN, CSRmesh, Inferno Firmware Platform, MAPX, Quatro 5500 Series, CSR8350, SiRFstarIV and SyncLock. It offers its solutions in various industries, such as audio and home entertainment; connected car; connected wearables, health and fitness, and Internet of everything. The Company’s applications include auto sensors, car radio, home automation, mono headsets, soundbars, Bluetooth speakers, display audio, home entertainment ecosystems, car navigation, gaming and stereo headsets.

NeoPhotonics Company Profile

NeoPhotonics Corporation develops, manufactures and markets optoelectronic products that transmit, receive and switch digital optical signals for communications networks. The Company develops and manufactures Transmitter Products, Receiver Products and Switch Products that are used in ultra-high speed digital optical communications, high speed switching and provisioning, and access connections for wireless and fiber-to-the-home communications networks. The Company’s products are categorized into groups, including High Speed Products and Network Products and Solutions. The High Speed Products includes products designed for 100G and beyond for telecommunication and datacenter or content provider networks and applications. Its Network Products and Solutions consist of various products designed for applications below 100G, and include 40G products. The Company combines its transmitter and receiver products into Transceiver modules.

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