Financial Comparison: Optical Cable (NASDAQ:OCC) & Vistance Networks (NASDAQ:VISN)

Vistance Networks (NASDAQ:VISN) and Optical Cable (NASDAQ:OCC) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Vistance Networks and Optical Cable, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vistance Networks	0	4	0	0	2.00
Optical Cable	1	1	0	0	1.50

Vistance Networks currently has a consensus target price of $19.33, suggesting a potential upside of 219.03%. Given Vistance Networks’ stronger consensus rating and higher possible upside, research analysts clearly believe Vistance Networks is more favorable than Optical Cable.

Insider and Institutional Ownership

88.0% of Vistance Networks shares are owned by institutional investors. Comparatively, 13.6% of Optical Cable shares are owned by institutional investors. 3.5% of Vistance Networks shares are owned by company insiders. Comparatively, 22.4% of Optical Cable shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Vistance Networks and Optical Cable’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vistance Networks	247.69%	32.28%	4.61%
Optical Cable	1.29%	5.92%	2.50%

Volatility and Risk

Vistance Networks has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500. Comparatively, Optical Cable has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Earnings & Valuation

This table compares Vistance Networks and Optical Cable”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vistance Networks	$1.93 billion	0.72	$2.28 billion	$30.80	0.20
Optical Cable	$73.04 million	1.64	-$1.46 million	$0.12	112.92

Vistance Networks has higher revenue and earnings than Optical Cable. Vistance Networks is trading at a lower price-to-earnings ratio than Optical Cable, indicating that it is currently the more affordable of the two stocks.

Summary

Vistance Networks beats Optical Cable on 10 of the 13 factors compared between the two stocks.

About Vistance Networks

CommScope Holding Company, Inc. provides infrastructure solutions for communications and entertainment networks. It operates through four segments: Broadband Networks (Broadband), Outdoor Wireless Networks (OWN), Venue and Campus Networks (VCN), and Home Networks (Home). The Broadband segment provides converged cable access platforms, passive optical networking products, video systems, access technologies, fiber and coaxial cables, fiber and copper connectivity products, and hardened closures to the telco and cable provider broadband market. The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, Spectrum Access System, and Comsearch products to the macro and metro cell markets. The VCN segment offers Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells, enterprise fiber, and copper infrastructures for campuses, venues, data centers, and buildings. The Home segment provides devices and related software, and management solutions that offer residential connectivity and services to subscribers, such as digital subscriber lines, cable modems, and telephony and data gateways; and set top boxes and software that support cable, satellite, and Internet protocol television content delivery, which include digital video recorders, high definition set top boxes, and hybrid set top devices. It offers its products and services through specialized resellers and distributors, satellite video distributors, and system integrators, as well as directly to customers in the United States, Europe, the Middle East, Africa, the Asia Pacific, the Caribbean, Latin America, and Canada. The company was formerly known as Cedar I Holding Company, Inc. and changed its name to CommScope Holding Company, Inc. in January 2011. CommScope Holding Company, Inc. was founded in 1976 and is headquartered in Hickory, North Carolina.

About Optical Cable

Optical Cable Corporation, together with its subsidiaries, engages in the manufacture and sale of fiber optic and copper data communications cabling and connectivity solutions primarily for the enterprise market in the United States and internationally. The company provides fiber optic and hybrid cables for high bandwidth transmission of data, video, and voice communications; and copper datacom cables, including unshielded and shielded twisted pair constructions. Its fiber optic connectivity products include fiber optic wall mounts, cabinet mount and rack mount enclosures, pre-terminated fiber optic enclosures, fiber optic connectors, splice trays, fiber optic jumpers, plug and play cassette modules, pre-terminated fiber optic cable assemblies, adapters, and accessories; and copper connectivity products comprising category compliant patch panels, jacks, plugs, patch cords, faceplates, surface mounted boxes, distribution and multi-media boxes, copper rack mount and wall mount enclosures, cable assemblies, cable organizers, and other wiring products for equipment rooms, telecommunications closets, data centers, and workstation applications. In addition, the company offers network, data storage, and telecommunications management systems, such as data cabinets, wall mount enclosures, horizontal and vertical cable management systems, and open frame relay racks; and datacom wiring products, including various enclosures, and modules and modular outlets for single dwelling and multiple dwelling residential uses. Further, it provides specialty fiber optic connectors and connectivity components, copper datacom connectors, and related systems and solutions for military, other harsh environment, and special applications, as well as cylindrical connector products. The company sells its products to distributors, original equipment manufacturers, value-added resellers, and end-users. Optical Cable Corporation was incorporated in 1983 and is headquartered in Roanoke, Virginia.